REX Shares and Osprey Funds has surprisingly filled for not just one but 21 new cryptocurrency exchange-traded funds.
The filling, which was announced on Friday, features ETFs tied to tokens such as Cardano, Stellar, Sui, and Hype with most of them designed with staking features that would allow investors to earn rewards while holding their assets, in addition to benefiting from token price changes.
According to the SEC documents, tokens covered under these staking products include Cardano, Avalanche, Polkadot, Near, Sei, Sui, Bittensor, and Hype.
Meanwhile, this is coming shortly after REX-Osprey’s recent Solana staking ETF reached a new high. This seems to have encouraged the firms to push forward with multi-coin filings.
Offshore Structures and Global Reach
To stay compliant with U.S. tax and regulatory requirements, the funds are set to use Cayman Islands subsidiaries. These offshore structures mirror the strategies of the U.S.-listed funds and enable the firms to preserve regulated investment company status.
The documents also indicate that as much as 40 percent of the funds’ assets could be invested in non-U.S. exchange-traded products, referencing issuers such as 21Shares, CoinShares, and Valour that are active in Europe and Canada.
More Filings, but Delays Expected
Meanwhile, others have joined in as well. Defiance ETFs LLC also filed prospectuses on Friday, including leveraged products tracking not only crypto assets but also major names like Tesla and Amazon.
“Things are getting wild,” Bloomberg Intelligence analyst James Seyffart commented in a post on X, as he referred to the sudden rush of applications.
However, this new fillings follows the recent decision by the SEC to approve new listing standards that simplify the process for commodity-based trust shares. This means that dozens of crypto ETF applications no longer need to undergo the lengthy 19b-4 rule review, and would cut down the time it takes for funds to reach the market. That has triggered a wave of new filings, including proposals tied to Dogecoin, XRP, and Litecoin.
Still, there may be need to wait as the U.S. government shutdown that began Wednesday has put a cloud over the process. With limited resources available, the SEC is unlikely to move forward on registration statements until normal operations resume.
Also Read: Government Shutdown Delays SEC Decision on Canary Litecoin ETF
