REX-Osprey™ Introduces First Ethereum Staking ETF in the US

REX-Osprey™ has recently introduced the ESK, the REX-Osprey™ ETH + Staking ETF, marking the first 1940 Act U.S.-listed ETF that offers investors the chance to gain exposure to Ethereum (ETH) along with staking rewards. This groundbreaking ETF is designed to provide investors with a cost-effective and convenient way to invest in spot Ethereum (ETH) through the 1940 Act ETF structure. It provides the added benefit of ETH staking, allowing investors to participate in Ethereum’s proof-of-stake network by earning monthly distributions based on their holdings.

Investors in the fund will benefit from holding a combination of directly staked ETH and other exchange-traded products that also hold and stake spot ETH. It is worth noting that all staking rewards obtained by the fund will be directly passed on to investors, without any portion being retained by REX or Osprey.

The launch of ESK comes on the heels of the successful debut of SSK, the REX-Osprey™ Solana + Staking ETF, on July 2, 2025. SSK was not only the first Solana ETF to offer exposure to spot Solana returns in the U.S. but also the first Cryptocurrency ETF in the U.S. to provide distributions related to staking rewards. Since its launch, SSK has managed to exceed $300 million in assets under management and recently transitioned to a Regulated Investment Company (RIC) structure for enhanced tax efficiency while maintaining its unique spot exposure + staking strategy.

REX-Osprey is a collaborative effort between REX Financial, known for its innovation in alternative ETFs, and Osprey Funds, a specialist in digital assets with a focus on crypto access and infrastructure. Together, they are transforming the landscape of digital asset investing by offering innovative ETF products that merge traditional finance with crypto innovation.

Investing in the REX-Osprey ETFs carries a high degree of risk, much like any form of investment. Potential investors are advised to carefully consider the fund’s investment objective, risks, charges, and expenses before committing. The Fund’s prospectus and summary prospectus contain crucial information about REX Shares and should be reviewed thoroughly before making any investment decisions.

It is essential to note that the Fund’s investment exposure is primarily concentrated in the Ethereum ecosystem. As a result, risks associated with this exposure may have adverse effects on various aspects of the Fund’s performance, including net asset value, trading price, yield, total return, and its ability to meet its investment objective. The value of the Fund can be more volatile due to its focus on underlying securities in the crypto sector, potentially leading to performance variations compared to a more diversified investment approach or the market as a whole.

Investors should be aware of the risks linked to crypto assets, including the extreme volatility, regulatory uncertainty, market manipulation, security risks, and technological changes associated with these assets. The value of the Fund will fluctuate with the price of ETH, influenced by various factors such as network adoption, congestion, smart contract failures, validator misbehavior, and competition from other platforms. Additionally, crypto asset exchanges and counterparties are less regulated than traditional financial institutions, and their operations are susceptible to fraud, hacking, and disruptions.

Furthermore, the Fund’s investment in ETH tokens entails risks unique to investing in Ethereum, a relatively new innovation subject to substantial market volatility, rapid price swings, uncertainty, and speculation-driven demand. The development and the acceptance of ETH are influenced by multiple factors that can be challenging to evaluate, potentially impacting its price and liquidity. Security risks, regulatory changes, and operational problems on ETH trading platforms can further exacerbate these uncertainties.

The Fund’s staking activities come with their set of risks, including the illiquidity of staked assets, market price volatility during the lock-up period, missed trading opportunities, and potential earnings losses during the unstaking period. Staked assets are also vulnerable to security breaches, network attacks, smart contract vulnerabilities, and failure of validators or custodians, all of which could result in a complete loss of the staked asset.

In conclusion, with the introduction of the ESK ETF, REX-Osprey continues its mission of providing investors with innovative investment opportunities in the digital asset space, combining traditional finance principles with the cutting-edge technology of cryptocurrency. While these products present exciting opportunities, it is crucial for investors to understand and carefully evaluate the associated risks and market dynamics before considering an investment in these ETFs.