Close Menu
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
What's Hot

Bitcoin And Ethereum Awaken Ghost Chain Giants

July 26, 2025

Bitcoin Sale: UK Set to Offload Historic Seizure

July 26, 2025

MicroStrategy Bitcoin Holdings Swell With Fortune

July 26, 2025
Facebook X (Twitter) Instagram
  • About Us
  • Contact Us
  • Terms of Service
  • Privacy Policy
X (Twitter) Telegram
Crypto Junction
  • Crypto News
    • News
    • Bitcoin
    • Blockchain
    • BNB
    • Dogecoin
    • Ethereum
    • Litecoin
    • Meme Coins
    • Solana
    • Toncoin
    • XRP
  • Business
  • Markets
  • Regulation
  • Guides
  • Press Release
Crypto Junction
Home » Osprey Funds Staking ETF Plan Questioned by SEC
Ethereum News

Osprey Funds Staking ETF Plan Questioned by SEC

Alice MonroeBy Alice MonroeJune 15, 20253 Mins Read
Twitter Telegram Copy Link Pinterest LinkedIn Facebook Reddit
The U.S. Securities and Exchange Commission (SEC) is raising issues with REX Shares and Osprey Funds’ put forth staking ETFs.
Share
Twitter Telegram Facebook Pinterest Copy Link

The U.S. Securities and Exchange Commission (SEC) is raising issues with REX Shares and Osprey Funds’ put forth staking ETFs. The funds which aim to present staking rewards at the same time as exposure to Ethereum and Solana are first of their kind in the crypto ETF world. But regulators are not convinced. Their push back brings to the fore again issues which we have had for some time of how blockchain based assets do in fact fit within present financial regulations.

Osprey Funds ETFs Stir Regulatory Waters

REX-Osprey has put forth a C-Corporation structure which is a departure from the typical open ended funds that ETFS use. This structure brings in novel benefits like staking which investors can participate in, retention of earnings, and voting rights. But the SEC is of the opinion that these features complicate the daily creation and redemption processes. They see this as against Rule 6C-11 which is the regulatory framework for ETFs.

This structure is very much a first of its kind but at the same time brings up very basic issues. The SEC reports that such funds do in fact fail to meet the basic liquidity and transparency marks. In some cases assets which may not be made available for quick redemption which in turn breaks the liquidity rules. Also lack of transparency in the funds’ structure which is in part due to the fact that validator operations must be kept rather private.

Osprey Funds’ Dual-Asset Stakes In The Fire

ETFs will split in their investments of 50/50 between Ethereum and Solana. Also bringing to the table is a put in place which does not require the user to stake but which instead the platform itself does the staking of at any rate half of the total assets. This while it may produce great returns of 3-5% for ETH, and 6-8% for SOL also brings in a degree of regulatory interdependence.

Solana doesn’t even has the spot ETF approval at present. Should either the asset or the staking model be rejected that could bring the whole project down. SEC’s Corporate Finance Division reports we may see a chain reaction of regulatory issues.

Osprey Proposes Reforms Under SEC Pressure

Not to be left behind, Osprey Funds and REX Financial put forth their responses. They are,

  • To meet redemption requests of 20%.
  • Insurance coverage that goes up to $50M for slashes.
  • Weekly reports of staking yields and validator performance.

They also have put forth that which staking rewards be classified as return of capital  not taxable dividends  which is a way to avoid complex IRS rules. Also reported is that Greg King CEO of Osprey is open to more rigorous disclosures if it in turn brings about SEC approval.

Broader Implications For Crypto ETFs

SEC delay the staking ETF development put on hold from 12 to 18 months. Also heavy players like Fidelity and BlackRock are reporting to have put out their related projects. Also Grayscale is looking at a C-corp conversion which is a like that of Osprey Funds.

The decision could set massive precedents: The decision is a major precedent

  • Are staking rewards really dividends?
  • Can ETFs be this complex?
  • Will validators need SEC registration?

Market players report that a rejection may only put off but not end innovation. Should the SEC give the go ahead though we may see an altcoin ETF boom.

Blockchain Innovation Crypto Regulation Ethereum ETF Osprey Funds REX Shares SEC Solana ETF Staking Rewards
Share. Telegram Twitter LinkedIn Pinterest Facebook Reddit Copy Link
Alice Monroe
Alice Monroe

Alice Monroe is an Associate Writer at Crypto Junction, covering crypto trends, token marketing, and emerging blockchain projects with a focus on real market insights.

Related Posts

Bitcoin Sale: UK Set to Offload Historic Seizure

July 26, 2025

JPMorgan Loan Offer Cracks Open Bitcoin Vault

July 26, 2025

Stablecoin Regulation GENIUS Act Passes in U.S. House

July 26, 2025

PUMP Token Gains Vanish As LetsBONK Dominates The Market

July 26, 2025
Trending Posts

Trump Crypto SARs Under Government Review

May 17, 2025

What are Social Media Backlinks? The Missing Piece in Your SEO Strategy

April 19, 2025

Coinbase User James Harper Case Rejected By US Government

June 2, 2025

Subscribe to Updates

Get the latest sports news from SportsSite about soccer, football and tennis.

Crypto Junction, founded in 2014, is one of the original and most trusted sources for cryptocurrency news and blockchain insights. We provide accurate, unbiased, and timely coverage of digital assets, market trends, and industry developments.

All content on Crypto Junction is for informational and educational purposes only and should not be considered financial, investment, or legal advice. Cryptocurrency investments are highly volatile and carry risks. Always conduct your own research before making financial decisions.

We're social. Connect with us:

X (Twitter) Telegram
Top Insights

Bitcoin And Ethereum Awaken Ghost Chain Giants

July 26, 2025

Bitcoin Sale: UK Set to Offload Historic Seizure

July 26, 2025

MicroStrategy Bitcoin Holdings Swell With Fortune

July 26, 2025
ABOUT
  • About Us
  • Cookie Policy
  • Editorial Policy
  • Investment Disclaimer
  • Press and Media Kit
  • Terms of Service
  • Affiliate Disclosure
  • Contact Us
NEWSLETTER

Subscribe to Updates

Get the latest crypto news and updates direct to your inbox - we don't spam

X (Twitter) Telegram
  • Altcoin News
  • Bitcoin News
  • Dogecoin News
  • Ethereum News
  • Litecoin News
  • Meme Coin News
  • Solana News
  • XRP News
© 2025 Crypto Junction

Type above and press Enter to search. Press Esc to cancel.

bitcoin
Bitcoin (BTC) $ 118,057.63
ethereum
Ethereum (ETH) $ 3,724.34
xrp
XRP (XRP) $ 3.16
tether
Tether (USDT) $ 1.00
bnb
BNB (BNB) $ 780.44
solana
Solana (SOL) $ 185.68
usd-coin
USDC (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.23614
staked-ether
Lido Staked Ether (STETH) $ 3,719.58
tron
TRON (TRX) $ 0.319383
cardano
Cardano (ADA) $ 0.824578
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 118,071.63
wrapped-steth
Wrapped stETH (WSTETH) $ 4,494.26
hyperliquid
Hyperliquid (HYPE) $ 43.81
sui
Sui (SUI) $ 4.21
stellar
Stellar (XLM) $ 0.436721
chainlink
Chainlink (LINK) $ 18.29
hedera-hashgraph
Hedera (HBAR) $ 0.280297
wrapped-beacon-eth
Wrapped Beacon ETH (WBETH) $ 4,002.72
bitcoin-cash
Bitcoin Cash (BCH) $ 558.39
wrapped-eeth
Wrapped eETH (WEETH) $ 3,983.14
avalanche-2
Avalanche (AVAX) $ 24.71
litecoin
Litecoin (LTC) $ 114.38
weth
WETH (WETH) $ 3,725.35
leo-token
LEO Token (LEO) $ 8.98
shiba-inu
Shiba Inu (SHIB) $ 0.000014
the-open-network
Toncoin (TON) $ 3.31
usds
USDS (USDS) $ 1.00
ethena-usde
Ethena USDe (USDE) $ 1.00
binance-bridged-usdt-bnb-smart-chain
Binance Bridged USDT (BNB Smart Chain) (BSC-USD) $ 1.00
whitebit
WhiteBIT Coin (WBT) $ 44.08
polkadot
Polkadot (DOT) $ 4.12
uniswap
Uniswap (UNI) $ 10.42
coinbase-wrapped-btc
Coinbase Wrapped BTC (CBBTC) $ 117,963.61
monero
Monero (XMR) $ 319.90
pepe
Pepe (PEPE) $ 0.000013
bitget-token
Bitget Token (BGB) $ 4.54
crypto-com-chain
Cronos (CRO) $ 0.139626
aave
Aave (AAVE) $ 294.19
ethena-staked-usde
Ethena Staked USDe (SUSDE) $ 1.19
bittensor
Bittensor (TAO) $ 429.12
dai
Dai (DAI) $ 1.00
ethena
Ethena (ENA) $ 0.579193
near
NEAR Protocol (NEAR) $ 2.87
ethereum-classic
Ethereum Classic (ETC) $ 22.78
pi-network
Pi Network (PI) $ 0.441247
ondo-finance
Ondo (ONDO) $ 1.05
aptos
Aptos (APT) $ 4.80
internet-computer
Internet Computer (ICP) $ 5.65
jito-staked-sol
Jito Staked SOL (JITOSOL) $ 226.05
okb
OKB (OKB) $ 48.16
mantle
Mantle (MNT) $ 0.78823
pudgy-penguins
Pudgy Penguins (PENGU) $ 0.041922
bonk
Bonk (BONK) $ 0.000034
kaspa
Kaspa (KAS) $ 0.099232
blackrock-usd-institutional-digital-liquidity-fund
BlackRock USD Institutional Digital Liquidity Fund (BUIDL) $ 1.00
algorand
Algorand (ALGO) $ 0.274011
arbitrum
Arbitrum (ARB) $ 0.450078
binance-peg-weth
Binance-Peg WETH (WETH) $ 3,724.39
vechain
VeChain (VET) $ 0.025808
usd1-wlfi
USD1 (USD1) $ 1.00
cosmos
Cosmos Hub (ATOM) $ 4.74
render-token
Render (RENDER) $ 4.22
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.23586
gatechain-token
Gate (GT) $ 17.71
worldcoin-wld
Worldcoin (WLD) $ 1.16
official-trump
Official Trump (TRUMP) $ 10.19
sei-network
Sei (SEI) $ 0.344865
sky
Sky (SKY) $ 0.094351
fasttoken
Fasttoken (FTN) $ 4.57
fetch-ai
Artificial Superintelligence Alliance (FET) $ 0.733623
binance-staked-sol
Binance Staked SOL (BNSOL) $ 197.72
spx6900
SPX6900 (SPX) $ 1.97
filecoin
Filecoin (FIL) $ 2.65
quant-network
Quant (QNT) $ 121.24
rocket-pool-eth
Rocket Pool ETH (RETH) $ 4,240.12
lombard-staked-btc
Lombard Staked BTC (LBTC) $ 118,027.62
flare-networks
Flare (FLR) $ 0.024116
kelp-dao-restaked-eth
Kelp DAO Restaked ETH (RSETH) $ 3,903.80
jupiter-exchange-solana
Jupiter (JUP) $ 0.552656
susds
sUSDS (SUSDS) $ 1.06
story-2
Story (IP) $ 5.51
jupiter-perpetuals-liquidity-provider-token
Jupiter Perpetuals Liquidity Provider Token (JLP) $ 5.08
kucoin-shares
KuCoin (KCS) $ 11.59
xdce-crowd-sale
XDC Network (XDC) $ 0.089893
usdtb
USDtb (USDTB) $ 1.00
curve-dao-token
Curve DAO (CRV) $ 1.05
injective-protocol
Injective (INJ) $ 14.48
stakewise-v3-oseth
StakeWise Staked ETH (OSETH) $ 3,917.39
celestia
Celestia (TIA) $ 1.94
mantle-staked-ether
Mantle Staked Ether (METH) $ 3,986.69
usdt0
USDT0 (USDT0) $ 1.00
first-digital-usd
First Digital USD (FDUSD) $ 0.997932
liquid-staked-ethereum
Liquid Staked ETH (LSETH) $ 4,021.34
fartcoin
Fartcoin (FARTCOIN) $ 1.33
nexo
NEXO (NEXO) $ 1.30
blockstack
Stacks (STX) $ 0.809813
optimism
Optimism (OP) $ 0.719478
renzo-restaked-eth
Renzo Restaked ETH (EZETH) $ 3,913.12
polygon-bridged-usdt-polygon
Polygon Bridged USDT (Polygon) (USDT) $ 1.00