SEC Flags Concerns on Crypto ETFs Offering Staking Rewards
(Bloomberg) — A potentially watershed effort to launch US crypto exchange-traded funds that offer staking rewards is throwing up regulatory doubts, even after the funds said they received initial SEC registration approval.
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Issuers REX Financial and Osprey Funds are targeting to launch ETFs tracking Ethereum and Solana that offer staking exposure, which allows investors to earn rewards by pledging tokens to help operate the blockchain.
US regulators are now raising concern the vehicles may not legally qualify as ETFs at all under federal securities law.
In a letter late Friday sent to ETF Opportunities Trust — the legal entity that issues various ETFs including those managed by firms like…
