The world of crypto ETFs is evolving rapidly, and a groundbreaking development has just reshaped the landscape. Anchorage Digital has been named the exclusive custodian and staking partner for the newly launched Rex-Osstrey Solana + Staking ETF, marking a pivotal moment in the institutional adoption of digital assets. This ETF is the first in the United States to combine direct token exposure with staking rewards under the 1940 Investment Company Act framework—offering regulated, yield-generating access to Solana (SOL) for institutional investors.
This milestone underscores a broader shift in the crypto investment ecosystem: from passive holdings to active yield strategies. With regulatory clarity gaining momentum and major financial institutions embracing blockchain-native features like staking, products such as this ETF represent the next evolution in digital asset investment vehicles.
A New Era for Crypto ETFs
Unlike spot Bitcoin and Ethereum ETFs registered under the 1933 Securities Act, the Rex-Osstrey Solana + Staking ETF operates under the more stringent 1940 Investment Company Act. This regulatory distinction requires that all fund assets be held by a qualified custodian—a role uniquely fulfilled by Anchorage Digital, the only federally chartered digital asset bank approved to provide both custody and staking services for regulated funds.
👉 Discover how regulated staking is transforming institutional crypto investing
This structural advantage allows the ETF to directly hold SOL tokens while also participating in staking through Anchorage’s secure, compliant infrastructure. As a result, investors gain not only price exposure to Solana but also a share of the network’s staking rewards—effectively boosting total returns within a fully auditable and regulated framework.
Nathan McCauley, CEO of Anchorage Digital, emphasized the significance of this launch:
“Staking is the next chapter in the crypto ETF story. This release marks a critical step forward in providing institutions with comprehensive access to the crypto ecosystem through regulated vehicles.”
Why the 1940 Act Structure Matters
The choice of a 1940 Act fund structure is not merely regulatory—it’s strategic. These funds are typically favored by institutional investors due to their robust governance, transparency, and investor protections. They’re also more easily integrated into traditional financial platforms like 401(k) plans, retirement accounts, and advisory portfolios.
By anchoring this ETF under the 1940 Act, Rex Shares and Osstrey Fund have positioned it as a viable long-term holding for pension funds, family offices, and wealth managers seeking diversified exposure to high-potential blockchains like Solana—with added yield through staking.
Moreover, the inclusion of staking rewards introduces a compelling income component absent in most traditional crypto ETFs. As network participation increases, so does the potential return for investors—without them needing to manage nodes or navigate complex DeFi protocols.
How Staking Works Within the ETF Framework
Anchorage Digital provides an end-to-end platform that enables secure custody and seamless delegation to validator partners. The ETF’s SOL holdings are staked via Anchorage’s network of trusted validators, ensuring high uptime, compliance with anti-money laundering (AML) standards, and real-time reporting.
All staking rewards are accrued at the fund level and passed through to shareholders, enhancing overall performance. While exact distribution schedules may vary, the integration ensures that yield generation remains transparent and tax-reportable—a critical factor for institutional compliance teams.
Greg King, CEO of Rex Shares, described the product as “the next evolution in digital asset ETFs.” He noted that Anchorage’s ability to support staking within a compliant fund structure was essential to making this innovation possible.
Expanding the Horizon: Multi-Asset Yield Strategies
In May 2025, Rex Shares and Osstrey Fund filed with the SEC to launch additional C-corporation ETFs targeting both Solana and Ethereum, with plans to stake portions of their holdings to generate supplementary income. Both proposed funds carry a management fee of 0.75%, though investors should note that tax liabilities associated with C-corp structures may increase effective costs compared to pass-through entities.
Still, for many institutions, the trade-off is worthwhile: predictable reporting, regulatory safety, and access to on-chain yields in a single wrapper.
As more altcoin ETF proposals await SEC approval—including those for Cardano, Polkadot, and Avalanche—the approval signals from recent greenlights (such as Grayscale’s hybrid crypto fund) suggest growing regulatory comfort with diversified digital asset products.
👉 Explore how next-gen ETFs are unlocking staking yields for mainstream investors
The Role of Anchorage Digital in Institutional Crypto Adoption
Anchorage Digital’s role extends beyond custody. It acts as a core infrastructure provider for institutions demanding both regulatory clarity and on-chain yield generation. Its federal charter gives it unique standing in the U.S. financial system, allowing it to bridge traditional capital markets with blockchain-native functionalities.
With this latest partnership, Anchorage further solidifies its position as the go-to custodian for advanced crypto investment products—especially those combining security, compliance, and yield.
Frequently Asked Questions (FAQ)
What makes the Rex-Osstrey Solana + Staking ETF different from other crypto ETFs?
This ETF is the first in the U.S. to offer both direct Solana token exposure and staking rewards under the 1940 Act framework. Most existing crypto ETFs only provide price exposure without yield generation.
Who can invest in this ETF?
The fund is available to accredited and institutional investors through traditional brokerage and wealth management platforms that support 1940 Act funds.
How are staking rewards distributed to investors?
Rewards are collected at the fund level and distributed proportionally to shareholders, typically reflected in increased net asset value (NAV) or periodic payouts.
Is there additional tax complexity with staking-based ETFs?
Yes—because it’s structured as a C-corporation, the fund may generate taxable income even if not distributed. Investors should consult tax advisors before investing.
Why is Anchorage Digital the only qualified custodian for this ETF?
It is currently the only federally chartered digital asset bank authorized by U.S. regulators to provide both custody and staking services for regulated investment funds.
Could this model be applied to other blockchains?
Absolutely. The success of this ETF could pave the way for similar products based on Ethereum, Avalanche, or other proof-of-stake networks offering staking rewards.
👉 Learn how blockchain-based yield strategies are entering mainstream finance
Final Thoughts: The Future of Yield-Generating Crypto Investments
The launch of the Rex-Osstrey Solana + Staking ETF represents more than just a new financial product—it signals a maturing crypto market where institutions can access decentralized protocols safely, legally, and profitably.
As regulatory frameworks evolve and infrastructure improves, we can expect to see more hybrid investment vehicles that blend traditional finance safeguards with blockchain-native returns. Anchorage Digital’s leadership in custody and staking positions it at the forefront of this transformation.
For investors watching from the sidelines, now may be the time to explore how next-generation ETFs can offer not just exposure—but earnings—from digital assets.
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