REX-Osprey Launches Groundbreaking Ethereum Staking ETF, First of Its Kind in US Market
Pioneer Investment Vehicle Delivers Direct ETH Exposure with Staking Rewards to American Investors
In a landmark development for cryptocurrency investment vehicles, REX-Osprey has successfully introduced the first Ethereum staking ETF in the United States, marking a significant milestone in the evolution of regulated crypto investment products. This innovative fund, trading under the ticker ESK, distinguishes itself in the crowded digital asset marketplace by offering investors not only exposure to spot Ethereum but also direct staking payouts—a feature that has remained elusive in competing products awaiting regulatory approval.
The ESK fund represents a sophisticated approach to Ethereum investment, combining direct staked ETH holdings with exchange-traded products that similarly stake Ethereum. What makes this offering particularly attractive to investors is its transparent reward structure: 100% of ETH staking rewards are distributed to investors through monthly payouts, with neither REX nor Osprey retaining any portion of these yields. Structured under the Investment Company Act of 1940, the fund provides a familiar regulatory framework that institutional and retail investors can navigate with confidence while gaining exposure to the second-largest cryptocurrency by market capitalization.
“With ESK, we’re giving investors access to Ethereum plus staking rewards in the most broad-based US ETF format,” explained Greg King, CEO of REX Financial, highlighting the fund’s unique position in the market. This launch represents a continuation of REX-Osprey’s strategic vision of “introducing crypto staking through the ETF structure,” further cementing the joint venture’s reputation as an innovator in the digital asset investment space. The partnership between REX Shares and Osprey Funds has consistently focused on developing crypto-focused ETFs that provide regulated access to digital assets, addressing a growing demand from investors seeking exposure to cryptocurrencies through traditional financial vehicles.
Market Context: Competition and Capital Flows in Crypto ETFs
The timing of ESK’s launch is particularly noteworthy as major financial institutions including BlackRock, Fidelity, and Franklin Templeton remain in regulatory limbo, awaiting Securities and Exchange Commission approval for their own Ethereum funds with staking capabilities. The SEC has repeatedly postponed rulings on staking features for Ethereum funds filed by these established players, giving REX-Osprey a significant first-mover advantage in this specialized segment of the crypto ETF market. This regulatory head start could prove crucial in capturing investor interest and establishing market share before larger competitors enter the space.
The broader landscape for cryptocurrency ETFs presents a complex picture of investor sentiment. While spot Ethereum ETFs in the US already manage close to $25 billion in assets, with BlackRock’s ETHA commanding the largest share, recent capital flows indicate diverging investor attitudes toward different cryptocurrencies. On September 25, Bitcoin ETFs recorded substantial inflows exceeding $149 million, led primarily by BlackRock’s IBIT product. Conversely, Ethereum ETFs experienced outflows of approximately $79 million during the same period, reflecting weaker demand as investors withdrew capital from ETH funds. This contrasting movement of assets highlights the dynamic and sometimes unpredictable nature of investor behavior in the cryptocurrency ETF sector.
The launch of ESK comes at a time when institutional interest in cryptocurrency investment vehicles continues to grow, despite periodic market volatility. By offering a staking component that generates yield in addition to potential price appreciation, REX-Osprey has created a product that addresses multiple investor objectives—capital growth potential, yield generation, and regulatory compliance—all within a familiar ETF wrapper. This multifaceted approach may appeal to a broad spectrum of investors, from those seeking pure Ethereum exposure to those interested in the additional benefits of staking rewards without the technical complexity traditionally associated with crypto staking processes.
Expanding the Crypto ETF Ecosystem: Dogecoin and XRP Funds
REX-Osprey’s innovation in the cryptocurrency ETF space extends beyond Ethereum. Last week, the joint venture launched the first US-based Dogecoin and XRP ETFs, further diversifying investment options for those seeking regulated exposure to digital assets. Trading under the tickers DOJE and XRPR respectively, these funds have already demonstrated significant market activity. XRPR recorded approximately $37.7 million in trading volume on its launch day, while DOJE saw around $17 million, indicating substantial initial interest from investors.
Like the new Ethereum staking ETF, these funds operate under the Investment Company Act of 1940, providing a consistent regulatory framework across REX-Osprey’s product lineup. Market data suggests continued investor engagement with these new offerings, with XRPR maintaining active trading volumes exceeding 200,000 shares daily and DOJE attracting approximately $8 million in inflows since its debut. According to recent market data, XRPR closed trading at $22.80 per share, while DOJE settled at $21.24, reflecting the current market valuations of their underlying assets.
The introduction of these specialized cryptocurrency ETFs addresses growing investor demand for diversified crypto exposure through regulated investment vehicles. By utilizing the established 1940 Act framework, REX-Osprey has created products that offer compliance assurance while providing direct price tracking of the underlying cryptocurrencies. This approach delivers a streamlined investment experience, eliminating the technical barriers associated with cryptocurrency ownership such as wallet management and exchange interactions. As institutional and retail investors increasingly seek regulated pathways to cryptocurrency markets, REX-Osprey’s expanding ETF lineup positions the firm as a pioneering force in bridging traditional finance with digital asset investments.
The successful launch of the Ethereum staking ETF, following closely on the heels of the Dogecoin and XRP products, demonstrates REX-Osprey’s commitment to innovation in the cryptocurrency investment space. By consistently being first to market with novel crypto ETF structures, the joint venture has established itself as a trailblazer in providing regulated access to digital assets. As the cryptocurrency ETF landscape continues to evolve, with potential new entrants from major financial institutions and possible regulatory developments, REX-Osprey’s early positioning in specialized products like staking ETFs may prove to be a significant competitive advantage in capturing investor interest and assets in this rapidly developing market segment.
