REX-Osprey has launched the primary US exchange-traded fund designed to pair spot Ethereum publicity with staking rewards.
Announced on Sept. 25, the brand new product trades below the ticker ESK and is registered as a 1940 Act ETF, giving traders entry to Ethereum by way of a well-known regulatory framework.
The ESK fund blends spot ETH holdings with a staking part, distributing rewards from Ethereum’s proof-of-stake system to shareholders on a month-to-month foundation.
In contrast to many staking merchandise supplied by way of personal agreements or custodians, REX-Osprey emphasised that it doesn’t hold a share of the rewards. As an alternative, the total proceeds from staking are handed on to traders.
Greg King, chief government of REX Monetary, mentioned:
“With ESK, we’re giving traders entry to Ethereum plus staking rewards in essentially the most broad-based US ETF format. This continues our work of introducing crypto staking by way of the ETF construction.”
This rollout builds on the corporate’s July launch of the first Solana Staking ETF in the US. That product broke new floor as the primary Solana ETF and the primary home crypto ETF to incorporate staking-related distributions.
Since then, the fund has grown past $300 million in property below administration and shifted right into a Regulated Funding Firm (RIC) construction to supply tax effectivity whereas preserving its mixed spot-and-staking technique.
Ethereum ETFs’ inflows cool
The arrival of ESK comes at a time when investor urge for food for spot Ethereum ETFs has slowed significantly.
Data from SoSo Worth reveals that September has introduced simply $110 million in web inflows throughout 9 US Ethereum spot merchandise, in contrast with $3.8 billion in August and $5 billion in July. Notably, inflows have occurred on solely seven buying and selling days, whereas outflows have happened in 10 trading sessions this month.
Nonetheless, the cumulative flows into the merchandise stand at $13.62 billion, with the funds managing $27.42 billion.
These numbers will considerably enhance if the US Securities and Alternate Fee (SEC) permits the funds to combine staking into their merchandise. The monetary regulator just lately prolonged the overview interval for this approval.