SEC Flags Compliance Concerns Over Proposed Ethereum and Solana ETFs
The U.S. Securities and Exchange Commission (SEC) expressed concerns that two proposed exchange-traded funds (ETFs) linked to Ethereum and Solana may not qualify as investment companies under the Investment Company Act of 1940. The SEC raised questions about whether the REX-Osprey ETH and SOL ETFs, which include staking components, primarily invest in securities as required. ETF Opportunities Trust, the issuer, filed a registration statement for these ETFs on January 21, which became effective on May 30, but the funds have not launched or been listed. The SEC indicated potential improper filing under Form N-1A and non-compliance with Rule 6c-11. The agency's recent guidance clarified that certain crypto staking types do not constitute the sale of securities, though this guidance is not legally binding. Commissioner Caroline Crenshaw dissented, citing ongoing uncertainty in the law.
