SEC Delays SOL and ETH Staking ETF Approvals, Citing Structural and Compliance Concerns

Published: 2025-06-04 07:25:23 |

The US Securities and Exchange Commission (SEC) has postponed decisions on staking exchange-traded funds (ETFs) for Ethereum (ETH) and Solana (SOL), citing compliance and structural concerns. The ETFs, proposed by REX Financial and Osprey Funds, aim to give investors exposure to staking rewards from these proof-of-stake blockchains. Regulatory concerns focus on the funds’ use of rare c-corp and offshore structures, which may conflict with Rule 6C-11 governing ETF company types. The SEC has specifically warned that disclosures about investment company status may be misleading, leaving legal classification questions unresolved. Though the ETF filings technically became effective as of May 30, neither has launched, and both issuers have paused further steps pending regulatory clarity. Notably, the SEC’s cautious approach persists despite recent guidance stating that crypto staking does not violate securities law. Analysts, such as Bloomberg’s Eric Balchunas and James Seyffart, report that issuers are actively working to address regulatory feedback, but anticipate that a final SEC decision may not arrive until October. Approval could potentially inject fresh liquidity into crypto markets by attracting traditional finance investors; however, ongoing regulatory delays are contributing to uncertainty for traders monitoring possible shifts in retail and institutional adoption of staking-linked ETFs.

Neutral

The SEC’s continued delay and scrutiny over Ethereum and Solana staking ETFs create a regulatory overhang that limits short-term bullish momentum for these assets. While potential ETF approvals could enable significant inflow from institutional and traditional finance investors in the future, the lack of immediate clarity or progress tempers any positive sentiment. Until the SEC issues a final decision, likely not before October, traders should expect subdued market response with increased uncertainty. Historically, such regulatory delays have resulted in range-bound trading for the related cryptocurrencies, with a clear market direction emerging only after decisive approvals or rejections.