What happened?
The SEC has raised concerns about the structure of proposed staked Solana and Ether ETFs, arguing that these may not qualify under current ETF regulations. The agency flagged the use of a C-corporation structure as conflicting with existing ETF rules. As a result, decisions on these staking ETFs are likely delayed until October.
Who does this affect?
This affects REX Financial and Osprey Funds, the companies proposing the staked Solana and Ether ETFs. It also impacts investors and market participants who are anticipating these new investment opportunities. The delay in approval means potential investors will have to wait longer before they can invest in these specific ETFs.
Why does this matter?
The SEC’s concerns and subsequent delay could impact the market by slowing down the introduction of new, diverse crypto investment products. This could postpone the entry of fresh institutional capital into the crypto sector, which many view as crucial for market growth. Additionally, the decision might influence how other ETF issuers structure their products to comply with regulatory standards.