SEC Clears First US Ethereum, Solana Staking ETFs

- US SEC authorizes first staking ETFs for Ethereum (ESK) and Solana (SSK). - ETFs to combine asset price tracking with staking rewards, a US market first. On June 28, 2025, the U.S. Securities and Exchange Commission (SEC) approved two groundbreaking exchange-traded funds (ETFs) for Ethereum (ticker: ESK) and Solana (ticker: SSK), launched by REX Shares and Osprey Funds. According to The Block on June 28, these are the first ETFs in the United States to track cryptocurrency asset prices while also generating yield from staking rewards, marking a major innovation in the market. A critical factor in the approval was the funds’ classification as C-corporations. This structure aligns with the SEC's regulatory framework and ensures that staking rewards are taxed at the corporate level before they are distributed as dividends, resolving compliance concerns under the Investment Company Act of 1940. However, this arrangement comes at a cost to investors, who will face higher expenses, including a 0.75% management fee for each fund. Eric Balchunas, a senior ETF analyst at Bloomberg, commented on the approval on June 28, calling it a "done deal" and stating, “they are good to launch it looks like.” REX Shares has already started promoting the Solana ETF under the ticker SSK, while the Ethereum ETF registration is moving forward under ESK. Both ETFs will be listed on the Cboe BZX Exchange, solidifying their place in the broader market. This development marks a significant step for crypto-backed financial products, as these ETFs combine traditional price tracking with the potential for staking yield. This structure could attract more institutional investors to the market, boosting overall liquidity and the adoption of cryptocurrencies. If successful, ESK and SSK may open the door for similar offerings tied to other proof-of-stake assets. As of June 28 at 17:15 UTC, Ethereum (ETH) was valued at $2,439.03, reflecting a 0.71% change over the past 24 hours. In the same period, Solana (SOL) was trading at $149.74, a strong 4.75% increase, according to the latest market data.