REX Shares has filed with the US Securities and Exchange Commission (SEC) to introduce two new exchange-traded funds (ETFs) centered on Ethereum and Solana.
The filing, submitted on May 30, was marked “immediately effective,” signaling that the launch could happen soon.
REX’s New ETF Filings to Test SEC’s Stance on Staking
According to the SEC filing, these ETFs will hold the underlying crypto assets and stake a portion of them.
Each fund plans to invest at least 80% of its assets in either Ethereum or Solana. At least 50% of those holdings will be staked to earn on-chain rewards, which investors will receive as dividend income.
Bloomberg ETF analyst Eric Balchunas highlighted the filing’s significance, noting that it could lead to the launch of the first spot Solana ETF, as current offerings only track Solana futures.
He added that REX leveraged the Investment Company Act of 1940 (40 Act) to fast-track the listing. This allows the firm to bypass the longer and more cumbersome process tied to the Securities Act of 1933 (33 Act).
First-ever staked Ether and Solana ETFs could be launching soon. REX filing went effective (meaning launch likely in near-term). Would also be first-ever spot Solana too (only futures exist curr). This is the benefit of using 40 Act, it’s faster track to mkt but more work/boxes… https://t.co/GzSUbtLkq7
Moreover, these funds will operate as C corporations rather than follow the traditional structure of regulated investment companies (RICs). This structure provides specific tax advantages, particularly for staking-related activities.
James Seyffart, another Bloomberg ETF analyst, called the move a “clever legal and regulatory workaround” to bring staking-based ETFs to market.
“These ETFs are structured as c-corps which is very rare in the ETF world. Only really used for some MLP ETFs that I can think of top of my head. There are pros and cons to the structure but looks like one pro is that this was one way to get some level of signoff from the SEC,” Seyffart stated.
However, he cautioned that the long-term viability of this approach remains uncertain. This is because more efficient structures, such as grantor trusts, could eventually replace C-corp ETFs.
“There might be more efficient vehicles/structures for this type of exposure that come to market in the future. Maybe even later this year. Maybe later than that. There are lots of questions about grantor trusts and their ability to do staking that will likely require input from the IRS. (Grantor trusts are the structure underlying the current spot bitcoin and ethereum ETFs and the structure behind all the other spot crypto ETP filings),” Seyffart added.
On Thursday, the financial regulator clarified that staking models do not automatically qualify as securities. It also noted that additional features like early withdrawal options or bundled services don’t change the regulatory status.
“The Division of Corporation Finance clarified its view that certain proof-of-stake blockchain protocol “staking” activities are not securities transactions within the scope of the federal securities laws,” SEC Commissioner Hester Peirce said.
After numerous Congressional debates and revisions, the GENIUS Act is now on the verge of becoming law. The bill, which aims to regulate the stablecoin industry across the United States, is widely expected to be signed.
According to representatives from Digital Chamber, a D.C.-based advocacy group for the blockchain industry, the bill approval will likely come before the end of June. Such a move would increase institutional adoption and strengthen the US dollar’s dominance globally.
When Will the GENIUS Act Pass?
Poised for passage, the GENIUS Act is a landmark bill that would federally regulate the US stablecoin industry.
Despite recent disagreements between Republican and Democratic Senators, the bill passed a key procedural vote. Kristopher Klaich, Policy Director at The Digital Chamber, strongly believes in its impending approval.
“I feel pretty strongly that there won’t be more hiccups… I think the industry has been such a strong player in politics for the last couple of years and supporting campaigns… there’s a high cost for members that may be the stick in the mud,” he told BeInCrypto.
According to Taylor Barr, the advocacy group’s Government Affairs and PAC Manager, 53 amendments have been made.
“Majority leader Thune is committed to having what he’s calling a fully open amendment process, which means every single amendment has the full right to go through a debate vote and to have full closure on each amendment. So at the end of the day, that could be a three-week-long process,” Barr told BeInCrypto.
However, Barr clarified that a fully open process with 53 individual debates is unlikely. He expects these amendments to be divided into three or four groups, resulting in a more efficient and abbreviated open amendment process, given that many are duplicative.
If Barr’s estimations are correct, the bill will pass before the end of this month. When it does, the significance will be substantial for the greater crypto industry.
Understanding Stablecoin Impact
Stablecoins are arguably the most globally adopted digital asset. Unlike traditional cryptocurrencies like Bitcoin or altcoins, they provide worldwide access to a stable medium of exchange.
According to a January report by crypto exchange CEX.io, the total stablecoin transaction volume reached 27.6 trillion in 2024, exceeding Visa’s total payment volume and Mastercard’s by 7.7%.
Tether and Circle dominate the market at $151 billion and $59 billion, respectively. Together, they have an 89% market share, according to rwa.xyz.
Tether and Circle dominate stablecoin market share. Source: rwa.xyz.
Their heavyweight presence in global economies makes a bill like the GENIUS Act all the more significant. This is especially true in the context of a debilitated US dollar.
The Dollar’s Waning Influence
The US dollar started the year exceptionally weakly. Two days ago, the US Dollar Index (DXY)—a key measure heavily influenced by the euro—fell nearly 9% to just under 99. The results marked its weakest calendar year opening since at least the mid-1980s.
This situation and broader de-dollarization efforts by major US debt holders like China and Japan intensify concerns about the dollar’s future.
US Dollar Index Continues to Decline. Source: Yahoo Finance
Data from Ark Invest illustrates this shift. In 2011, these three nations held 23% of the $10.1 trillion in outstanding US Treasury debt.
By November 2024, despite the total outstanding US Treasury debt rising to $36 trillion, their combined holdings had dropped significantly to approximately 6%.
This substantial decrease in holdings by key foreign creditors highlights growing worries about the dollar’s long-term stability and the United States’ ability to refinance its massive debt.
“Dollars are the world reserve currency. Demand for dollars has waned at the sovereign level. Over recent years, the largest purchasers of treasuries are cutting their holdings of treasuries. That is not a good situation for the United States as they try to refinance,” Klaich said.
Klaich added that legislation like the GENIUS Act is crucial:
“In my mind, there’s very little more important than the stablecoin bill being passed from an macroeconomic perspective… If demand for dollars diminishes at the sovereign level, structurally speaking, if that is or can be replaced by demand at a retail individual level, that is a huge boon to the US government.”
The data behind Klaich’s statements seems to back his analysis.
What Role Will Stablecoins Play in Future US Debt Demand?
The stablecoin market is poised for significant growth. According to an April report from Citigroup, the total stablecoin supply could reach $1.6 trillion by 2030. This growth could create a demand for US debt comparable to the historical levels supported by sovereign nations.
Stablecoin issuers could be one of the largest holders of US treasuries by 2030. Source: Citigroup.
The GENIUS Act could facilitate this transition.
“Hopefully, when it passes, demand for stablecoins will explode because there are many companies and banks that are planning to introduce stablecoins that will provide the rails for them to operate at a consumer and business level. So the efficiencies companies and individuals realize will help push that,” Klaich explained.
“It allows anybody in the world to access US dollars. What that affords the US from an economic warfare standpoint is significant,” Klaich added.
With persistent inflation risks, the Federal Reserve is unlikely to buy back significant amounts of US treasuries. Therefore, encouraging stablecoin use allows this market to effectively replace currently ineffective financial mechanisms.
Amendments to the Bill
If the GENIUS Act is implemented correctly, the stablecoin industry could become a valuable financial tool for the US government to ensure long-term support for the US dollar.
The bill underwent a difficult revision process. According to Barr, the process was tedious and politically challenging.
“If you look at all of the progress we’ve made, we’ve worked on this for three Congresses now. We’ve worked on this [through] multiple different leaderships– minority, majority split. So we’re so close. We’ve done all this progress so we can see the finish line. We’re going to get there,” he said.
However, multiple revisions were a prerequisite for its passage to ensure the bill responsibly addressed consumer protection, national security, and market integrity issues.
Klaich noted that these critical concerns were addressed fairly in the legislative process. He emphasized that recent versions of the bill effectively integrated these revisions.
“None of those issues are existential, and they’ve been negotiated into the latest version of the bill that’s being considered right now. I think the changes that have been made are reasonable and acceptable,” he said.
The future will reveal if the bill passes and achieves its desired effect in helping the US overcome its complicated economic reality.
The condition of the crypto market has improved considerably as April comes to an end. Meme coins are expected to start off strong in May as investors seem to be taking these joke tokens a lot more seriously, as seen with Housecoin (HOUSE).
BeInCrypto has analyzed three meme coins for investors to watch and how their interest is cementing in these tokens.
Zerebro (ZEREBRO)
Launch Date – November 2024
Total Circulating Supply – 999.95 Million ZEREBRO
Maximum Supply – 1 Billion ZEREBRO
Fully Diluted Valuation (FDV) – $60.01 Million
ZEREBRO has surged by 30% in the last 24 hours, trading at $0.061. The meme coin is showing strong bullish momentum and looks poised to continue its uptrend.
With the 50-day Exponential Moving Average (EMA) providing solid support, ZEREBRO demonstrates strong technical strength. This support level could help propel the altcoin toward the next major resistance at $0.086. If the altcoin continues to hold above the 50-day EMA, it may continue its upward trajectory with sustained investor interest.
However, profit-taking from investors could trigger a price correction, sending ZEREBRO lower. A drop below the $0.051 support level could lead to further declines toward $0.042. The recent gains could be wiped out if this support is breached, and the bullish outlook would be invalidated.
Pudgy Penguins (PENGU)
Launch Date – December 2024
Total Circulating Supply – 62.86 Billion PENGU
Maximum Supply – 88.88 Billion PENGU
Fully Diluted Valuation (FDV) – $943.05 Million
PENGU has surged by 25% since Sunday, trading at $0.0123, showing strong upward momentum. The meme coin is aiming to breach the $0.0147 resistance. For this to happen, continued strong support from investors is necessary. If momentum continues, PENGU could make its way through this key level to further gains.
A breakout above $0.0147 resistance could set PENGU on a path toward $0.0225, indicating the potential for continued upward movement in the coming days.
A failure to break the $0.0147 resistance would likely trigger a decline in PENGU’s price. If the altcoin falls below $0.0100, it could continue to slide toward the $0.0071 support level. Such a drop would invalidate the current bullish outlook and could lead to a prolonged downturn.
Small Cap Corner – Housecoin (HOUSE)
Launch Date – April 2025
Total Circulating Supply – 998.83 Million HOUSE
Maximum Supply – 998.83 Million HOUSE
Fully Diluted Valuation (FDV) – $66.90 Million
HOUSE has emerged as a surprising contender in the meme coin market, drawing attention with its humorous concept of investing in crypto rather than purchasing real estate. This fresh approach has resonated with investors, and many are actively supporting the token as it gains traction within the crypto community.
Over the past week, HOUSE has skyrocketed by 816%, currently trading at $0.0664. The altcoin is aiming to flip the $0.0666 level into support, a crucial step before targeting the $0.1000 resistance. If successful, this would set the stage for continued growth, potentially drawing more investors into the token.
However, if the novelty of the idea fades or investors decide to lock in profits, HOUSE could see a sharp decline. A fall below $0.0666 could lead to a drop to $0.0170, invalidating the current bullish outlook. Such a correction would likely signal the end of the altcoin’s recent uptrend.
Ethereum (ETH) is showing mixed signals as it hovers near a critical technical zone, with traders closely watching for a breakout or breakdown. On one hand, the BBTrend has flipped sharply bullish, jumping to 4.99 after hitting -3 just a day earlier—suggesting growing upside momentum.
On the other hand, whale activity continues to decline for the seventh consecutive day, a potential sign of weakening institutional confidence. With ETH stuck between strong resistance at $2,900 and key support at $2,679, the next move could define the short-term market direction.
Ethereum BBTrend Flips Bullish: What 4.99 Means for Price Action
Ethereum’s BBTrend has surged to 4.99, rising sharply in the past few hours after hitting a negative peak of -3 just yesterday.
This sudden momentum shift suggests a potential reversal from bearish to bullish conditions, as the trend strength has turned positive and is now approaching the upper threshold that typically signals a breakout scenario.
BBTrend, or Bollinger Band Trend, measures the directional strength of price movement relative to the Bollinger Bands. Values above 0 indicate upward momentum, while values below 0 suggest bearish pressure.
A reading around 4.99 indicates strong bullish momentum. If this trend holds or strengthens, it could signal further upside for ETH as traders interpret the move as a shift in market sentiment and positioning.
ETH Whale Count Declines for 7 Straight Days: Bearish Signal Ahead?
The number of Ethereum whales—wallets holding between 1,000 and 10,000 ETH—has steadily declined to 5,378, down from 5,427 just ten days ago and 5,400 three days ago.
These whales often gauge institutional or high-net-worth investor sentiment, and sustained reductions in their numbers typically indicate either profit-taking, risk reduction, or decreased confidence in near-term price action.
Tracking whale activity is crucial because these large addresses have the power to influence market trends through their trades. When whale counts increase, it’s often interpreted as accumulation, which can signal strong conviction in future price growth.
This behavior can weaken price support and lead to increased volatility. If the downtrend in whale count continues, it could place downward pressure on ETH and increase the risk of a broader market pullback.
Ethereum Approaches Critical Support as $2,900 Resistance Holds
Ethereum recently failed to break through the resistance near $2,900 and is now trending lower, approaching a key support level at $2,679. If this support is tested and fails to hold, the next downside targets are $2,479 and potentially $2,326, especially if bearish momentum accelerates.
These levels are critical, as a confirmed break below them would indicate a shift in short-term market structure and could trigger further selling pressure.
With whale activity declining and market sentiment appearing cautious, Ethereum is now at a technical crossroads.
On the flip side, the BBTrend indicator has shown a strong bullish reversal, suggesting buying pressure may be building. If Ethereum regains momentum and successfully retests and breaks the $2,900 resistance, it could open the door for a rally toward $3,000—a level not seen since February 1.
Such a move would likely reinforce bullish sentiment and attract renewed interest from sidelined traders.
However, for that scenario to play out, bulls must first reclaim lost ground and flip $2,900 into a solid support zone.
