Crypto Express

06/01 22:21

SEC says REX-Osprey staked SOL and ETH

SEC says REX-Osprey staked SOL and ETH funds may not qualify as ETFs
The SEC responded shortly after the issuers filed effective registration amendments for staked SOL and Ether exchange-traded funds.

5398


The United States Securities and Exchange Commission (SEC) responded to the effective registration amendment for Solana 
SOL
$151.44
 and Ether 
ETH
$2,489
 staked exchange-traded funds (ETFs) from ETF provider REX Financial and asset management firm Osprey Funds, raising concern that both investment vehicles do not qualify as ETFs due to their unique structures.

According to a recent report from Bloomberg, the regulators say the c-corp business structure used in the funds, which is incredibly rare for ETFs, conflicts with the 6C-11 rule, colloquially known as "the ETF rule." This regulation legally designates the types of corporate structures appropriate for exchange-traded funds. The SEC wrote in a May 30 letter:

"As we have communicated to you on several occasions, Commission staff continues to have unresolved questions about whether the Funds, if structured and operated as proposed, would be able to meet the definition of 'investment company' under the Investment Company Act."  
"Disclosures in the registration statement regarding the Funds’ status as investment companies may be potentially misleading," the letter continued.

#Share BTC or ETH Futures Trades#Check In Weekly, Win Prizes Weekly — Join the Fun!#Share Your Thoughts on Popular Assets in June

ЛайкПоделиться