Staking ETFs Aim to Bring Yield Generation to US Crypto Investors

Two asset managers are preparing to introduce a new class of cryptocurrency investment products that combine traditional exchange-traded fund (ETF) structures with staking income from Ethereum and Solana holdings.

According to a recent SEC filing, the planned funds will allocate at least 80% of their portfolios to ETH or SOL, with a minimum of 50% of those assets actively staked to generate on-chain rewards. This approach would allow investors to earn passive yield while gaining price exposure to the underlying tokens—without directly managing wallets or interacting with blockchain networks.

The ETFs are the result of a collaboration between REX Shares and Osprey Funds, two firms pushing for innovation in the regulated crypto investment space. Anchorage Digital, a federally chartered crypto bank, will serve as custodian and provide staking infrastructure. Its CEO, Nathan McCauley, said the move marks a major step forward in expanding investor access to the full spectrum of crypto utilities.

“These are the first ETFs to integrate federally regulated staking into a public offering,” McCauley explained, emphasizing Anchorage’s position as the only U.S. bank chartered to provide such services.

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What sets these ETFs apart is their regulatory strategy. Because they are structured under the Investment Company Act of 1940, they do not need to go through the more burdensome 19b-4 rule change process that has delayed many other crypto products. Instead, they will be treated as C corporations for tax purposes, meaning staking rewards will be classified as dividend income for investors.

This development comes amid ongoing industry discussions with U.S. regulators about staking policies, especially after renewed engagement from the SEC’s crypto task force and broader interest following the 2024 election cycle. The launch of staking-based ETFs could serve as a litmus test for how far regulators are willing to go in approving yield-generating crypto products.

While spot Bitcoin and Ethereum ETFs have already gained regulatory approval and immense popularity, staking ETFs could represent the next frontier—if these pioneering funds can gain traction.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.