Latest news with #OspreyFunds
Yahoo
02-07-2025
- Business
- Yahoo
Solana's first ETF goes live as crypto analysts predict surge of new altcoin funds
First Bitcoin, then Ethereum, and now Solana. The crypto industry is flooding traditional markets with assets pegged to cryptocurrencies that mom-and-pop investors can buy up from their brokerage accounts. On Wednesday morning, the first Solana exchange-traded fund, or ETF, went live on Cboe BZX, a stock exchange based in Chicago. Dubbed the REX-Osprey SOL and Staking ETF, the fund is available to investors who want exposure to Solana, one of the top cryptocurrencies whose market capitalization is about $81 billion, according to data from Binance. In addition to tracking the price of Solana, the fund, managed jointly by REX Financial and its sister firm Osprey Funds, also pays holders a variable monthly dividend whose current rate is 7.3% The price of Solana jumped 2% after markets opened Wednesday to now around $151. The ETF has seen inflows of about $20 million before midday, Greg King, founder and CEO of REX Financial, told Fortune. When they were first launched, cryptocurrency ETFs seemed exotic to many retail investors, but the successive debut of a Bitcoin, Ethereum, and now a Solana fund suggest the products are gaining a broader appeal. The ETFs also represent an entry point for new crypto investors at a time when brokerages like Vanguard don't let their users plug into a crypto exchange and buy the newest, hottest token. The arrival of spot crypto ETFs, or traditional market wrappers around the current price of a cryptocurrency, allow traditional and institutional investors to allocate a portion of their portfolio to crypto. For years, the Securities and Exchange Commission blocked the launch of spot Bitcoin ETFs in the U.S., even though similar products were available in Europe. The SEC worried that the crypto-tied assets would be prone to market manipulation. Grayscale, a crypto investment firm, battled the regulator in the courts, and, in October 2023, a judge said the SEC's rejections of Grayscale's application for a spot Bitcoin ETF were 'arbitrary and capricious.' In January 2024, a slew of spot Bitcoin ETFs went live, including an entry into the category from the asset management titan BlackRock. Since the launch of spot Bitcoin ETFs, almost $50 billion have poured into the investment products, according to data from SoSoValue. In July 2024, BlackRock and other issuers launched ETFs for Ethereum, the second largest cryptocurrency by market capitalization. And then, other issuers filed ETF applications for a slew of other cryptocurrencies, including Solana. 'I frankly think it would have been more difficult with the previous administration,' said King, the CEO of REX Financial. Now, amid a more friendly financial regime under President Donald Trump, analysts anticipate that the SEC will approve many of the applications to launch cryptocurrency-tied funds. 'We expect a wave of new ETFs in this second half of 2025,' James Seyffart, a research analyst at Bloomberg Intelligence, said on X. This story was originally featured on
Yahoo
02-07-2025
- Business
- Yahoo
Solana Staking ETF Opens for Trade, Becoming First Such U.S. Crypto Staking Product
REX Shares and Osprey Funds have selected Anchorage Digital as the exclusive custodian and staking partner for their newly launched REX-Osprey Solana + Staking ETF (SSK), the first crypto staking exchange-traded fund (ETF) listed in the U.S. The fund, which offers investors exposure to Solana (SOL) while generating staking rewards, began trading Wednesday on the Cboe exchange Wednesday at $25.47 per share. Unlike existing spot bitcoin and ethereum ETFs, which fall under different regulatory frameworks, SSK is registered under the Investment Company Act of 1940. That means a qualified custodian — not the fund issuer — is required to hold the underlying assets. Anchorage Digital, currently the only federally regulated bank authorized to both custody and stake digital assets, will fill that role. 'Staking is the next chapter in the crypto ETF story," said Nathan McCauley, CEO and co-founder of Anchorage Digital, in a release. "The launch of crypto staking ETFs marks a win for consumers and a significant step forward in full access to the crypto ecosystem." The ETF gives investors indirect exposure to Solana while also participating in the blockchain's staking mechanism, which provides additional yield by helping to secure the network. Staking allows holders of certain cryptocurrencies to earn rewards by locking their tokens into the network, a process that previously required technical know-how and direct interaction with crypto protocols. By packaging staking into an ETF structure, REX Shares and Osprey aim to make that process accessible to a wider range of investors through traditional brokerage accounts. SOL is higher by 2% over the past 24 hours to $150. The SSK launch comes as the crypto ETF market continues to evolve beyond bitcoin and ether, with issuers exploring new ways to bring blockchain-based products to regulated exchanges. The introduction of staking ETFs marks a new phase for the industry, combining income-generating features with exposure to digital assets, all within an SEC-regulated investment in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Crypto ETFs Just Hit a Brick Wall -- But Trump Might Blow It Wide Open
ETF issuers REX Financial and Osprey Funds are trying to push the crypto envelope and the SEC isn't thrilled. Both firms recently proposed funds that would let investors earn yield by staking Ether and Solana tokens. Think of it like earning dividends, except from validating blockchain transactions. The SEC initially let the proposals through a key filing stage, but within hours, staff flagged a major problem: these funds might not legally qualify as investment companies. That's because staking rewards fall into a regulatory gray zone and the SEC isn't ready to redraw the lines just yet. At the core is the 1946 Howey test, which says something is a security if investors expect profits from others' efforts. Staking arguably fits that mold. But here's the catch: the SEC has given mixed signals on what staking really is. Just last week, staff said federal securities laws generally don't apply to staking. Now they're saying the opposite. Commissioner Hester Peirce who leads the SEC's crypto task force publicly echoed the confusion, saying she's wrestling with the same questions. Meanwhile, the Trump administration is steering in a different direction entirely. President Trump has embraced crypto, stacked up a Bitcoin (BTC-USD) reserve, and welcomed memecoin fans into the fold. His message? The U.S. should be the crypto capital of the world. Despite the tension, crypto insiders think the path forward is still open. Bitwise CIO Matt Hougan sees this as part of a deliberate evolution futures ETFs first, then spot, and now staking. And recent precedent suggests the SEC can be flexible. Earlier this year, staff initially blocked a private credit ETF by State Street and Apollo Global, but the firms adjusted and got it back on track. Whether the same happens here remains to be seen. But one thing's certain: yield-hungry investors and crypto-native funds are pushing hard, and regulators will need to make up their minds soon. This article first appeared on GuruFocus.
Yahoo
05-06-2025
- Business
- Yahoo
Crypto ETFs Just Hit a Brick Wall -- But Trump Might Blow It Wide Open
ETF issuers REX Financial and Osprey Funds are trying to push the crypto envelope and the SEC isn't thrilled. Both firms recently proposed funds that would let investors earn yield by staking Ether and Solana tokens. Think of it like earning dividends, except from validating blockchain transactions. The SEC initially let the proposals through a key filing stage, but within hours, staff flagged a major problem: these funds might not legally qualify as investment companies. That's because staking rewards fall into a regulatory gray zone and the SEC isn't ready to redraw the lines just yet. At the core is the 1946 Howey test, which says something is a security if investors expect profits from others' efforts. Staking arguably fits that mold. But here's the catch: the SEC has given mixed signals on what staking really is. Just last week, staff said federal securities laws generally don't apply to staking. Now they're saying the opposite. Commissioner Hester Peirce who leads the SEC's crypto task force publicly echoed the confusion, saying she's wrestling with the same questions. Meanwhile, the Trump administration is steering in a different direction entirely. President Trump has embraced crypto, stacked up a Bitcoin (BTC-USD) reserve, and welcomed memecoin fans into the fold. His message? The U.S. should be the crypto capital of the world. Despite the tension, crypto insiders think the path forward is still open. Bitwise CIO Matt Hougan sees this as part of a deliberate evolution futures ETFs first, then spot, and now staking. And recent precedent suggests the SEC can be flexible. Earlier this year, staff initially blocked a private credit ETF by State Street and Apollo Global, but the firms adjusted and got it back on track. Whether the same happens here remains to be seen. But one thing's certain: yield-hungry investors and crypto-native funds are pushing hard, and regulators will need to make up their minds soon. This article first appeared on GuruFocus. Sign in to access your portfolio
Bloomberg
05-06-2025
- Business
- Bloomberg
SEC's Crypto Confusion Deepens as Next-Gen ETFs Test Boundaries
A new line of yield-chasing crypto funds is forcing the Securities and Exchange Commission to confront unresolved gaps in its regulatory framework, just as the Trump administration eases oversight of digital assets. The immediate dispute centers on two proposed funds from ETF firms REX Financial and Osprey Funds that would allow investors to earn rewards by deploying Ether and Solana tokens to help validate blockchain transactions, a process known as staking. The firms said they had cleared an initial SEC registration hurdle last week, but agency staff took the unusual step of objecting that very same evening. Staff warned the products may not meet standards to qualify as investment companies under federal law, raising broader questions about regulation of a hot corner of the crypto-investment world.
