Catenaa, Friday, June 06, 2025-The US Securities and Exchange Commission (SEC) has flagged compliance issues in the structure of proposed staked Solana and Ether exchange-traded funds, casting uncertainty over their eligibility under current ETF regulations.
The SEC raised objections to the funds’ C-corporation structure, used in applications from REX Financial and Osprey Funds, calling it incompatible with Rule 6C-11 — the provision that governs how ETFs must be organized. In a letter dated May 30, SEC staff said the funds may not qualify as investment companies and warned that related disclosures could mislead investors.
Analysts say final decisions on these ETFs, which would be the first to include staked altcoins, are unlikely before October. Bloomberg ETF expert James Seyffart noted that most filings face final deadlines later this year and that early approvals are rare.
Despite the concerns, industry watchers remain optimistic. REX’s legal team has expressed confidence in resolving regulatory conflicts. “Issuers are pushing the envelope to get first to market,” Bloomberg analyst Eric Balchunas posted on X.
The SEC had previously stated that staking crypto does not, in itself, constitute a securities transaction. Still, the agency has delayed rulings on several similar applications, reinforcing a cautious stance toward altcoin-linked ETFs.
Separately, BlackRock’s iShares Bitcoin Trust posted its largest single-day outflow of $430.8 million on May 30, breaking a 31-day inflow streak and signaling broader cooling in ETF sentiment.
