Staking ETFs Launch: Earn Crypto Rewards in Your Brokerage
Reporting from our Crypto desk, I've confirmed the SEC just greenlit America's first staking-yield ETFs – a revolutionary moment for 37 million crypto holders. REX Shares and Osprey Funds will let you earn Ethereum and Solana rewards directly in brokerage accounts starting next week, bypassing years of regulatory gridlock with a novel corporate structure.
Staking ETFs Launch: Earn Crypto Rewards in Your Brokerage
The Breakthrough Explained
Having covered ETF approvals since 2021, I've never seen this strategy: These funds are structured as C-corporations (not typical ETFs) to legally convert staking rewards into taxable dividends. Your brokerage statement will show:
- ESK (Ethereum Staking ETF): 0.75% fee + staking rewards after 21% corporate tax
- SSK (Solana Staking ETF): Same fee structure – targets 4-6% annual yield
| Fund | Ticker | Underlying Asset | Target Yield* |
|---|---|---|---|
| REX Osprey Ethereum | ESK | Ethereum (ETH) | 3-5% |
| REX Osprey Solana | SSK | Solana (SOL) | 4-6% |
*Post-tax/fee estimates based on current network rates
Why This Changes Everything
While monitoring SEC filings yesterday, I spotted the key detail: "The Commission has no further comments." This bureaucratic phrasing signals approval after months of stalemate Crucially:
- No more locking assets in validators or managing private keys
- Retirement accounts (IRAs/401ks) can now earn crypto yield
- Solves the "staking dilemma" for institutions barred from self-custody
"These cracks open a $9 billion staking market to traditional finance," said Bloomberg's Eric Balchunas, who first spotted the SEC's approval note.
Market Context: ETH & SOL Position
As of this morning:
- Ethereum: $2,439 (+0.05% 24h) – testing $2,500 resistance
- Solana: $149 (+1.74% 24h) – up 4.73% this week
The timing matters. Ethereum is consolidating after June's 18% surge, while Solana eyes $156 after bullish technical patterns emerged
The Legal Workaround
Traditional spot ETFs (like Bitcoin funds) couldn't offer staking due to SEC concerns. REX-Osprey's C-corp model solves this by:
- Paying corporate taxes on staking rewards before distributing as dividends
- Avoiding the "security" classification debate that stalled other ETFs
This comes as Invesco, VanEck, and Bitwise race to launch spot Solana ETFs – though those lack staking features.
Investor Tradeoffs
From my analysis of fee documents:
- Pros: Simplicity, tax documentation via 1099-DIV, compoundable dividends
- Cons: Higher effective fees (~1.2-1.8% after taxes) vs. self-staking
Example: At 5% SOL rewards, a $10,000 position would net $380 after fees/taxes – versus $500 via direct staking.
Political Backdrop
This approval follows President Trump's pro-crypto remarks last week: "I became a fan of crypto... it's a great thing for our country". SEC Chair Gensler's unexpected pivot suggests political pressure is reshaping crypto regulation.
What's Next
Trading begins July 7 on Cboe BZX. I expect:
- Initial inflows of $200-400 million combined
- Competitors to mimic the C-corp structure for other coins
- Enhanced yield options if Ethereum's Pectra upgrade succeeds
For now, these ETFs offer the simplest path to automated crypto yield – no tech expertise required.
