TechFlow news, June 1 — According to Bloomberg, the U.S. Securities and Exchange Commission (SEC) has raised questions about planned Ethereum and Solana staking yield ETF products, arguing that these products may not meet the statutory definition of an ETF under federal securities laws.
In a letter sent Friday evening to ETF Opportunities Trust, the SEC stated that two ETFs planned by REX Financial and Osprey Funds might fail to satisfy the legal definition requirements for investment companies—a status necessary for a fund to be listed on securities markets. The SEC said these funds "improperly filed registration statements" and that "disclosures in the registration statements regarding the funds' investment company status may be misleading."
Greg Collett, General Counsel at REX Financial, said the firm believes it can meet the SEC's requirements on the investment company issue and will not launch the funds until this matter is resolved. Previously, REX had indicated plans to launch the two ETFs by mid-June.
