REX Shares and Osprey Funds File for 21 Crypto ETFs with Staking Options

REX Shares and Osprey Funds have officially filed applications with the U.S. Securities and Exchange Commission (SEC) for 21 single-asset cryptocurrency exchange-traded funds (ETFs). This large-scale filing marks one of the most ambitious pushes for crypto ETFs in U.S. history, covering assets such as Cardano (ADA), Stellar (XLM), Sui (SUI), and Hype (HYPE).

Unlike traditional ETFs that only track token prices, many of these proposed funds incorporate staking. This structure allows investors to earn rewards from locking up their crypto holdings while also benefiting from price appreciation. Among the tokens proposed for staking-based ETFs are ADA, AVAX, DOT, NEAR, SEI, SUI, TAO, and HYPE. Notably, REX-Osprey’s Solana staking ETF recently reached new highs, motivating further expansion into multi-coin offerings.

To ensure compliance with U.S. tax and regulatory frameworks, the funds will use Cayman Islands subsidiaries. These entities mirror U.S.-listed strategies while preserving regulated investment company (RIC) status. Additionally, the filings reveal that up to 40% of assets could be allocated to non-U.S. exchange-traded products (ETPs), referencing issuers like 21Shares, CoinShares, and Valour.

Security and custody measures also feature prominently. According to the filings, private keys will be protected by hardware security modules (HSMs), ensuring multi-party authorization for any transfer. This reduces risks of unauthorized access and enhances investor protection.

The move reflects rising demand for altcoin exposure beyond Bitcoin (BTC) and Ethereum (ETH). By introducing staking-enabled ETFs, institutional investors without direct crypto holdings can still gain diversified exposure through regulated markets.

With the crypto market rallying as BTC, ETH, BNB, XRP, and SOL post notable gains, the timing of these filings underscores growing institutional interest. The SEC typically takes 75 days to review such applications, meaning approval could open the door to a new wave of crypto investment products in early 2025.