I just heard about these new ETFs from REX and Osprey that got approved by the SEC. They’re supposed to be the first ones in the US that give you both crypto price tracking and staking rewards. I’m trying to understand how this actually works.
From what I read, there’s one for Ethereum called ESK and another for Solana called SSK. They’re both going to trade on Cboe BZX with 0.75% fees, though the real cost might be higher because of taxes.
The interesting part is they used some kind of C-corporation setup to get around the usual ETF approval process. The staking rewards get taxed inside the fund first, then paid out as dividends.
This seems pretty big since we’ve never had staking ETFs in the US before. The regular Ethereum ETFs don’t do staking, and for Solana we only had futures ETFs until now.
Can someone explain how this C-corp structure actually lets them bypass the normal approval process? And does this mean other companies will copy this approach instead of waiting months for traditional spot ETF approval?
C-corp crypto ETFs work differently - they create an actual corporation that holds the crypto instead of a traditional fund structure. The corporation issues shares that trade like ETF shares, but they’re technically just corporate stock. The big advantage? Corporations can stake crypto without hitting the same regulatory walls that traditional investment companies face under the Investment Company Act of 1940. But there’s a catch - double taxation is real. Staking rewards get taxed at the corporate level first, then again when they pay dividends to shareholders. That’s gonna eat into your returns compared to staking directly. Whether other companies jump on this depends on performance and if the SEC decides to shut down this workaround. Crypto regulations change fast, so what works today might get hammered tomorrow.
totally! that c-corp structure seems like a smart move. it cuts through all that red tape with the SEC. i can see more companies jumping on this bandwagon to avoid long wait times for approvals. it could change the game for crypto ETFs!