The SEC has raised concerns regarding the REX-Osprey staked ETFs that were recently filed for Solana and Ethereum. Following the effective registration amendments for these staked exchange-traded funds, the SEC indicated that their unique business structure does not comply with existing ETF regulations, specifically citing the 6C-11 rule that outlines suitable corporate structures for ETFs. In a communication dated May 30, the SEC expressed doubts about whether the proposed funds can meet the definition of 'investment company' under the Investment Company Act, indicating that the disclosures could be misleading. Despite these concerns, analysts remain hopeful that an agreement could be reached between the issuers and the SEC. Bloomberg ETF analyst Eric Balchunas noted that REX's legal team believes a resolution is possible, with issuers eager to bring these investment vehicles to market. The SEC has also previously indicated guidance on other crypto-related matters but continues to scrutinize staked ETFs.

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