REX-Osprey ETH + Staking ETF Begins Trading as First U.S. Fund Combining Spot Ethereum and Staking Rewards

REX Shares has commenced trading of the REX-Osprey ETH + Staking ETF under the ticker symbol ESK, becoming the first exchange-traded fund in the United States to combine direct Ethereum exposure with the potential to earn staking rewards from the Ethereum network. The fund seeks investment results that correspond to the performance of Ether before fees and expenses.

REX Shares, the fund sponsor, operates as an asset management company specializing in crypto-focused investment products. The company has partnered with Osprey Funds to create this innovative ETF structure that allows investors to gain exposure to Ethereum while participating in the network's proof-of-stake validation process. The collaboration represents a significant development in the evolution of crypto ETFs beyond simple spot exposure.

The fund carries a gross expense ratio of 0.75 percent, with staking reward distributions not guaranteed according to the fund's documentation. ESK delivers monthly staking rewards to investors, providing a potential income stream in addition to price appreciation from Ethereum holdings. The structure allows traditional investors to access Ethereum staking rewards without the technical complexity of running validator nodes or managing staking infrastructure directly.

This launch follows the broader trend of crypto ETF innovation in 2024, as asset managers seek to differentiate their products in an increasingly competitive market. The approval and launch of spot Bitcoin and Ethereum ETFs earlier opened the door for more sophisticated crypto investment vehicles that incorporate additional yield-generating mechanisms. 

The fund's debut comes as Ethereum staking has grown significantly following the network's transition to proof-of-stake consensus in September 2022. Institutional demand for staking exposure has increased as investors seek yield opportunities in the crypto space beyond simple price appreciation.

REX Shares has also announced plans for additional crypto staking products, including the REX-Osprey SOL + Staking ETF targeting Solana exposure with similar staking reward mechanisms. The company said these products represent the next evolution in crypto ETF offerings for U.S. investors. 

Connect with us:
Fast News: t.me/blockflownews
Insights & Trends: x.com/BlockFlow_News