Key Takeaways
🔹 SEC challenges crypto staking ETFs – Regulators question whether REX Financial & Osprey Funds’ proposed ETFs meet legal standards
🔹 Potential misleading disclosures – SEC warns filings may improperly classify funds as “investment companies”
🔹 Approval hurdles remain – Firms confident but must address SEC concerns before launch
🔹 Broader crypto ETF uncertainty – Despite Bitcoin ETF approvals, SEC remains wary of staking-based products
SEC Pushes Back Against Crypto Staking ETFs
The U.S. Securities and Exchange Commission (SEC) is raising concerns over two proposed crypto staking ETFs from REX Financial and Osprey Funds, casting doubt on their regulatory compliance.
According to Bloomberg, the SEC sent a letter to ETF Opportunities Trust—the entity behind these funds—warning that the products may not qualify as traditional ETFs under securities laws. The agency specifically flagged:
⚠ Improper registration filings
⚠ Potentially misleading disclosures about the funds’ classification as “investment companies”
Despite these roadblocks, REX Financial remains optimistic. Greg Collett, the firm’s general counsel, stated:
“We believe we can satisfy the SEC’s concerns and won’t launch until we do.”
Why the SEC Is Skeptical of Crypto Staking ETFs
The SEC’s hesitation follows its historic approval of spot Bitcoin ETFs in January 2024. However, then-Chair Gary Gensler emphasized that the move did not signal broader crypto acceptance, stating:
“We did not endorse Bitcoin. Investors should remain cautious about crypto-related risks.”
Now, under the Trump administration, the SEC has softened its stance on some crypto enforcement—dropping lawsuits against Binance and its founder Changpeng Zhao—but remains wary of staking-based investment products.
What’s Next for Crypto Staking ETFs?
Bloomberg Intelligence ETF analyst James Seyffart predicts:
“Even if these specific ETFs don’t get approved, staking in U.S. ETFs will happen eventually—it’s a matter of when, not if.”
However, the SEC’s latest move suggests that crypto staking ETFs face an uphill battle, at least in the near term.
