REX-Osprey Files For ADA, HYPE, XLM, SUI ETFs as Crypto ETF Frenzy Heats Up

REX Shares and Osprey Funds have filed for 21 single-asset crypto exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). The applications include products tied to Cardano (ADA), Stellar (XLM), Sui (SUI), and Hype (HYPE). The filings represent one of the largest coordinated pushes for crypto ETFs in the market’s history.

REX-Osprey Crypto ETF Filings Include Staking, Cayman Structures, And Global ETPs

Based on the SEC document, the proposed ETFs are not limited to simple price tracking. Most of them are established as staked products. Thus, investors are able to earn rewards both from locking up their assets and the market performance of the tokens.

Tokens that have been proposed for staking rewards include ADA, AVAX, DOT, NEAR, SEI, SUI, TAO and HYPE. Relatedly, REX-Osprey’s Solana staking ETF recently hit a new high. The performance of this crypto ETF would have given the firms another boost to file for these multi-coin ETFs.

To comply with U.S. tax and regulatory requirements, the funds will use Cayman Islands subsidiaries. These entities mirror the strategies of the U.S.-listed crypto ETFs and allow the managers to keep exposure while maintaining regulated investment company status. Recently, the firms teased a Dogecoin ETF, causing a jump in DOGE price.

The filing also states that at least 40% of assets could be invested in non-U.S. exchange-traded products, such as ETPs listed in Europe or Canada. Issuers like 21Shares, CoinShares, and Valour are named among the reference products.

SEC To Review Custody-Backed Crypto ETFs

The filing also described crypto custody arrangements in detail. Hardware security modules (HSMs) will be deployed to safeguard private keys and the assets. Therefore, the transfer of any asset or a change in policy must be authorized by various others and this lowers the likelihood of having unauthorized withdrawals.

According to the two companies, investors desire more than Bitcoin and Ethereum. Therefore, a combination of the crypto ETFs mentioned above is a significant move.

This comes as the broader crypto market sees a strong rally at the start of the last quarter of the year. Assets like BTC, BNB, SOL, XRP, and ETH have recorded notable gains in the last few days.

With the SEC permission, these crypto ETFs would allow buying and selling these tokens through traditional exchanges. That would allow institutions that do not hold crypto directly to gain exposure to these altcoins. The SEC takes 75 days to review the paperwork and make a decision.