Latest news with #REXFinancial
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
10-06-2025
- Business
- Yahoo
Circle's Wild IPO Sparks ETF Rush Betting on the Hot Stablecoin Stock
(Bloomberg) -- Wall Street's ETF machine kicked into high gear just hours after Circle Internet Group Inc. went public, riding the frenzied initial public offering of the stablecoin giant as crypto technologies enter mainstream finance. Trump Said He Fired the National Portrait Gallery Director. She's Still There. NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems At least three issuers rushed to file related exchange-traded funds following Circle's white-hot Thursday debut. The firm — issuer of USDC, the second-largest stablecoin — saw its shares triple shortly after trading began, reviving animal spirits across an IPO-starved market. Filings for the Bitwise CRCL Option Income Strategy ETF, ProShares Ultra CRCL ETF and T-Rex 2x Long CRCL Daily Target ETF landed with the US Securities and Exchange Commission Friday and Monday. REX Financial's registration replaced an earlier ETF prospectus, effectively shortening the timeline for a potential approval. Bitwise Asset Management Inc.'s ETF seeks to employ a covered call strategy — which enhances the income of the underlying assets — while the versions from ProShares Advisors LLC and REX Financial offer amplified bets on the stock's performance by using derivatives to deliver two times its daily performance. With risk sentiment rekindled, funds tied to speculative assets — including leveraged or inverse bets — are increasingly popular. The rapid-fire pace at which ETF product teams are moving to cash in on the momentum of single stocks exemplifies the intense competition in the $11 trillion ETF arena in the US which has been flooded with more than 4,200 products. Of those, nearly 80 funds track digital-assets in some form, data compiled by Bloomberg show. 'It's an alignment of the stars,' said Athanasios Psarofagis, ETF analyst at Bloomberg Intelligence. 'It's a crypto company, so that's high demand, it's leveraged and it's a market hungry for IPOs.' Shares of the New York-based firm have soared more than 270% across their first three trading sessions, marking the most high-profile crypto equity debut since Coinbase Global Inc.'s direct listing in 2021. Its $1.1 billion IPO lands amid renewed bullishness for digital assets — fueled in part by a regulatory sea change under President Donald Trump, whose administration has signaled a dramatically friendlier stance toward crypto compared to his predecessor. That shift has emboldened both issuers and traders alike. Single-stock ETFs — many of them leveraged or using options overlays — now account for a record 16% of all new funds launched in 2025, per Bloomberg Intelligence. More than 15 firms are now competing in the space, most of them targeting high-conviction retail traders seeking fast, directional exposure. The ETFs being proposed are also increasingly aggressive: the average volatility of their underlying assets is nearly twice that of those for already approved products, according to BI data. Critical Vote Evidence of the mutability of the crypto crowd emerged on Tuesday as Circle shares fell as much as 10%. If the losses persist it will be the first daily slump since last week's IPO. Circle's dip comes ahead of potentially transformative stablecoin legislation, which is up for a crucial vote Wednesday. The bill is supported by the crypto industry and Trump, whose family's World Liberty Financial project has issued its own stablecoin. Stablecoins are crypto tokens typically designed to be pegged to the value of the US dollar or another traditional currency. Circle's role as the issuer of USDC — a stablecoin with around 29% market share — means the stock is not a pure crypto play. Its business model leans heavily on yield from US Treasuries and other safe assets that back its token. That sets it apart from revenue models like Coinbase, which rely on transaction fees, and has helped fuel investor interest. Retail trading behemoth Cathie Wood's ARK Investment Management, bought over 3 million shares of Circle for its flagship ETF (ticker ARKK) on Thursday, according to its website, placing it among the fund's top 10 largest holdings. The firm bought additional shares for its other funds. The Circle frenzy could set the tone for a broader wave of crypto IPOs. Gemini, the exchange run by the Winklevoss twins, has filed confidentially for a listing this year, while has staffed up with veteran talent to fast-track its plan to go public. 'This is the new trend. As certain companies IPO, we are seeing ETFs, and more specifically some levered ETFs, sprout to take advantage of any tailwinds,' said Mohit Bajaj, director of ETFs at WallachBeth Capital. Following Circle's huge run, 'some ETF issuers are trying to create a product based on it — in hopes that it will have success too.' --With assistance from Vildana Hajric. New Grads Join Worst Entry-Level Job Market in Years The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling What America's Pizza Economy Is Telling Us About the Real One Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again American Mid: Hampton Inn's Good-Enough Formula for World Domination ©2025 Bloomberg L.P.
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.
