Rex Shares Turbocharges ETH & SOL Staking ETFs with C-Corp Cayman Shuffle

Wall Street’s latest crypto hack? Rex Shares just cut the red tape—deploying a C-Corp and Cayman Islands shell game to fast-track Ethereum and Solana staking ETFs.

The move slashes regulatory friction while giving institutional investors a backdoor to yield. Because nothing screams ’financial innovation’ like offshore entities and corporate structuring.

One question remains: When does the SEC parking ticket arrive?

Rex Shares uses C-Corp and Cayman subsidiaries to speed ETH & SOL staking ETFs

Each fund will utilize a C-corporation structure, a rare choice in the ETF industry, to facilitate participation in staking activities while adhering to regulatory standards.

The funds will gain exposure to ETH and SOL through wholly owned Cayman Islands subsidiaries that will acquire and stake the cryptocurrencies. The launch date is uncertain, but Seyffart says these ETFs could be added within the next few weeks. 

Today’s filing comes in the wake of the US regulator, the Securities and Exchange Commission, having recently affirmed that staking through a PoS-based network is not considered securities.

Commenting further on the Rex Shares filing, James Seyffart noted that it was a smart move

“As you can see in screenshot above. They will be getting their spot exposure to ETH and SOL via Cayman subsidiaries. All of this, assuming they launch in NEAR future, is a bunch of clever legal and regulatory work-arounds to get these products to market,” he said in the X post.

SEC delays on spot crypto ETFs push Rex Shares to take alternative route

Rex Shares opting for this not-so-traveled path is likely an indirect result of the United States not approving any crypto spot ETFs to date.

The SEC recently delayed decisions on Grayscale’s Avalanche and Cardano spot ETF applications. This halt affects Grayscale’s work to transform its Avalanche Trust into a spot ETF and a similar application for Cardano.

The SEC began the 240-day statutory review period of Grayscale’s Cardano ETF proposal in February, and expectations remained high as the deadline neared. Prediction markets like Polymarket put the odds at about 71%, suggesting investors were highly optimistic.

However, the anticipation WOULD be dampened by the delay. The SEC has also reopened comments to elicit feedback from the public, therefore continuing to assess both regulatory and market impact considerations.

In related news, the SEC moved WisdomTree’s XRP spot ETF proposal to the next stage in the review process. The solicitation of comments is requested through public notice regarding investor protection and potential market manipulation concerns.

This proposal is made pursuant to Section 19(b)(2)(B), which shows that continued review is appropriate. It would be one of the first spot XRP ETFs approved in the US if passed.

Nasdaq has also filed a FORM 19b-4 to list and trade shares of the 21Shares Sui ETF on its exchange, representing the launch of the initial regulatory review period. This comes after 21Shares filed an earlier S-1, signaling its interest in providing institutional exposure to the SUI token.

Meanwhile, sui — the native asset of the Sui network — saw a mere 2% price bump following the filing news. But it currently trades around $3.32, a drop of roughly 6.9% in keeping with the broader market.

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