REX Shares Breakthrough: Why Wall Street's First Staking ETF Changes Everything

This isn't just another investment vehicle. It's a fundamental rewiring of how traditional finance interacts with blockchain technology.

"Rex also filed an updated prospectus, which totally filled in. Add it all up, and it appears as though all systems go for imminent launch," noted ETF analyst Eric Balchunas on social media.

But how did a relatively small player like REX succeed where giants like BlackRock have failed? And what does this mean for your investment options?

The Regulatory Chess Match: How Did REX Outmaneuver the SEC?

The SEC has rules. Many rules.

Most crypto companies follow the standard playbook—submitting what's called a "19b-4 filing" and then waiting. And waiting. And waiting some more.

Just ask Bitwise, whose Ethereum staking proposal has been trapped in regulatory limbo for months.

REX Shares didn't want to wait.

"Looks like they're comfortable pushing forward w/ their creative '40 Act structure," explained ETF Store president Nate Geraci. "Here we go."

What exactly did they do? They created a C-corporation under the Investment Company Act of 1940 instead of using the standard ETF structure. Industry insiders called this approach "extremely uncommon."

Geraci had previously described it as a "regulatory end-around"—essentially finding a legitimate but rarely used path through the regulatory maze.

The gambit addressed a specific SEC concern about Rule 6c-11 (the "ETF rule"), which requires daily portfolio transparency. By structuring their product differently, REX sidestepped roadblocks that have stalled everyone else.

And remarkably, it worked.

The SEC signaled acceptance through a June 28 "no further comments" notice—essentially giving REX the green light to proceed.

"This isn't just an ETF approval; it's validation that blockchain-native economics can integrate with traditional finance," said Greg King, CEO of REX Financial.

What Makes Staking Different? It's All About the Money

Have you ever wondered why crypto enthusiasts get so excited about staking?

It's simple. Staking makes your money work for you.

In proof-of-stake networks like Solana, you can "stake" your tokens to help secure the network. Think of it like putting your money in a high-yield savings account, except you're helping verify transactions instead of funding bank loans.

And the rewards can be substantial.

REX's Solana staking ETF (SSK) uses a three-pronged approach:

First, direct staking. About 40% of assets actively participate in Solana's network, earning protocol rewards averaging 7.3% annually.

Second, staked ETPs. Another 40% goes into products like Grayscale's Solana Trust.

Third, liquid staking tokens. The remaining 20% uses tokens like JitoSOL that provide instant liquidity while still generating yield.

Compare this to Coinbase's retail staking service at 5.53% APY, and you'll see why investors are excited. SSK distributes rewards directly to shareholders without middleman fees.

"A new era of yield-generating crypto exposure is here," REX Shares proclaimed.

And they're not wrong.

Follow the Money: Why Traders Are Betting Big on Solana

The market smells opportunity.

Solana futures open interest has exploded to $7.4 billion—a clear sign that serious money is positioning ahead of this ETF launch.

Will SOL hit $200 soon? Many traders are betting yes.

Why such excitement? Because yield-bearing ETFs fundamentally change the value proposition. When you can earn both price appreciation and ongoing rewards, the investment math transforms.

Even BlackRock's head of digital assets, Robbie Mitchnick, admitted their Ether ETF, while successful, remains "less perfect" without staking functionality.

BlackRock wants in on this game too. So does Grayscale, with their Ethereum staking ETF proposal awaiting SEC judgment by June 2025.

But REX got there first. And in finance, first-movers often win big.

The Domino Effect: What Happens Next?

REX's breakthrough isn't happening in isolation. It's triggering a chain reaction across the crypto landscape.

First, Ethereum staking ETFs suddenly have a clearer path forward. REX just created the blueprint—expect others to follow it.

Second, the SEC itself appears to be evolving. They've proposed a streamlined "single-step S-1 process" that could eliminate those cumbersome 19b-4 filings, potentially cutting approval timelines to just 75 days.

But perhaps most interestingly, this creates competition between blockchain networks themselves. Ethereum's staking yield sits at roughly 2.98%. Solana offers 8.31%.

Which would you choose?

If institutional money flows to the highest-yielding ETFs, blockchain networks may need to adjust their economics to stay competitive.

Winners and Losers: Who's Sweating This Development?

Not everyone wins when staking ETFs arrive. Some players should be nervous.

Centralized exchanges face a direct threat. Why use Coinbase for 5.53% yield when an ETF in your existing brokerage account might offer 7.3%?

Futures-based ETFs suddenly look outdated. Products like ProShares' SOL futures ETF suffer from "contango losses"—the cost of rolling futures contracts each month. Spot ETFs with staking eliminate this inefficiency.

Even traditional finance players should take notice. When stocks average 10% annually and bonds struggle to clear 5%, a regulated ETF offering 7-8% yield plus appreciation potential turns heads.

And let's not forget blockchain networks themselves. If capital flows to the highest yields, lower-yielding chains could face pressure.

New Balance Sheet Headaches: The Accounting Question

Have you wondered how companies will account for staking rewards?

It's not as simple as you might think.

The Financial Accounting Standards Board's ASU 2023-08 requires staking rewards to be reported at fair value. This creates new complexity for corporate accounting departments.

Consider Strategy (formerly MicroStrategy), which recently reported a $5.9 billion unrealized Bitcoin loss, triggering multiple lawsuits. Could ETF structures better handle this volatility?

For corporate treasurers, the math is changing. Direct crypto exposure might trigger shareholder lawsuits if prices decline, while staking ETFs could offer yield without the same balance sheet vulnerabilities.

It's a question every CFO considering crypto exposure should be asking.

The Next Frontier: Yield as the New Normal

This is bigger than one ETF launch.

REX Shares just proved that regulators can accommodate blockchain-native features within traditional investment frameworks. The floodgates are opening.

As the SEC streamlines its processes, expect a wave of similar products. Staked Cardano ETFs. Avalanche ETFs. Polkadot ETFs. They're all coming.

For you as an investor, this marks the beginning of true crypto yield arbitrage. Your capital can now flow to whichever chain offers the most efficient rewards.

Solana's first-mover advantage in securing a staking ETF gives it a tremendous edge in attracting institutional capital. For the broader crypto ecosystem, it signals that Wall Street is finally ready to embrace what makes digital assets truly revolutionary.

Not just price speculation. But actual yield from network participation.

"SSK isn't just a product—it's the bridge between traditional securities and blockchain's intrinsic yield mechanics," says Nate Geraci.

The investment landscape won't look the same in five years. What began with simple Bitcoin price exposure has evolved into sophisticated financial instruments that capture the full economic potential of blockchain networks.

And Wall Street's race for yield has only just begun.

Will you be ready when it reaches your portfolio?