REX-Osprey pushes crypto ETF boundaries with Ethereum staking fund

REX-Osprey unveiled ESK, a fund that pairs Ethereum holdings with staking payouts. The product stands as the first U.S. ETF of its kind, designed to bring blockchain-native yields into the traditional investment framework.

Summary

• REX-Osprey launched ESK, the first U.S. ETF combining Ethereum exposure with staking rewards.
• The fund operates under the Investment Company Act of 1940, offering strict regulatory oversight.
• Every staking reward flows directly to investors, distinguishing it from fee-based crypto products.

According to a press release dated Sept. 25, the collaboration between REX Shares and Osprey Funds has launched the ESK ETF, which will provide investors with exposure to spot Ethereum (ETH) alongside the monthly rewards generated from staking those assets on the blockchain.

The fund, dubbed REX-Osprey ETH + Staking ETF, operates under the Investment Company Act of 1940, a significant distinction that imposes strict regulatory requirements on its structure and operations.

Ethereum staking in a regulated ETF wrapper

The ESK fund is designed to hold a mix of directly staked Ethereum and other exchange-traded products that themselves maintain staked ETH positions. According to the press release, every validator reward earned by the fund will flow through to investors, with neither REX Shares nor Osprey Funds retaining any share of the distributions.

That distinction sets ESK apart from other crypto-linked products that often carry performance fees or revenue-sharing models. Notably, REX Financial CEO Greg King positioned the launch as a logical next step in the firm’s strategy.

The ESK rollout follows the July debut of SSK, the REX-Osprey Solana + Staking ETF. REX-Osprey said SSK has already surpassed $300 million in assets under management, demonstrating tangible market appetite for this hybrid investment model.

Additionally, SSK recently converted to a regulated investment company structure, a move that enhances tax efficiency for investors, a feature likely to be a consideration for ESK as it matures.