Rex Pares filed with the Securities and Exchange Commission (SEC) of the United States to introduce two new funds negotiated on the stock market (ETF) centered on Ethereum and Solana.
The deposit, submitted on May 30, was marked “immediately effective”, indicating that the launch could occur soon.
New Rex ETF deposits to test the position of the dry on the stimulate
According to the DRI file, these ETFs will hold the underlying cryptographic assets and will take part of it.
Each fund plans to invest at least 80% of its assets in Ethereum or Solana. At least 50% of these assets will be used to win chain awards, which investors will receive as dividends income.
Bloomberg ETF analyst Eric Balchunas stressed the importance of the deposit, noting that it could lead to the launch of the first ETF of Solana, because the current offers only follow Solana Futures.
He added that Rex had exploited the 1940 law on investment companies (40 ACT) to speed up the list. This allows the company to bypass the longer and heavier process linked to the ACT Securities of 1933 (33 ACT).
In addition, these funds will operate as C companies rather than following the traditional structure of regulated investment companies (RIC). This structure provides specific tax advantages, in particular for activities related to staking.
James Seyffart, another Bloomberg ETF analyst, described The Move as a “intelligent legal and regulatory bypass” solution to put FNB based on stalk on.
“These ETFs are structured as C-Corps, which is very rare in the world of FNB. Only really used for some ETF MLP that I can think of the top of my head. There are advantages and disadvantages to the structure, but it seems that a pro is that it was a way of obtaining a certain level of dry signaling,” said Seyffart.
However, he warned that the long -term viability of this approach remains uncertain. Indeed, more effective structures, such as conducies of condes, could possibly replace the ETF C-CORP.
“There could be more effective vehicles / structures for this type of exhibition that arrives on the market in the future. Maybe even later this year. Maybe later than that. There are a lot of questions about the fidups of the concations and their ability to make jalards that will probably require comments from the IRS. (Concessional trusts are the structure underlying the current Bitcoin and Etts and Ethers spot and the structure behind all the other SPOT CRYPTO ETP documents) ”.
Meanwhile, market observers noted that the deposit occurs shortly after the SEC has issued directives updated on cryptographic development.
On Thursday, the financial regulator said that the development models are not automatically considered to be titles. He also noted that additional features such as early withdrawal options or grouped services do not change the regulatory state.
“The finance division of companies has said that certain” stimulation “activities of certain” wake “activities of the blockchain are not securities transactions within the framework of federal securities laws,” said the SEC commissioner, Hester Peirce.
Industry experts like Nate Geraci of the ETF store think that this regulatory clarity could open the door to new cryptographic investment products. ETF issuers can now offer direct exposure to digital performance that generates performance thanks to familiar financial packaging.
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