Two investment powerhouses, REX Shares and Osprey Funds, have made a significant move. They recently filed 21 new applications with the U.S. Securities and Exchange Commission, or SEC. These filings aim to launch a variety of new crypto exchange-traded funds (ETFs). What makes these proposals interesting is their focus. They look beyond just Bitcoin and Ethereum, turning their attention to a wide range of other digital currencies, often called altcoins.
🚨 21 new crypto ETF applications filed with the SEC by REX and Osprey
They focus on staking and altcoins like ADA, XLM and AVAX
They seek to benefit from staking rewards, replicating the success of the Solana ETF
A recent regulatory change could accelerate the… pic.twitter.com/3OPxF2Sn5R
— Diario฿itcoin (@Blaze Trends)
These aren’t your typical investment products. Many of the proposed ETFs plan to include a feature called “staking.” This means the funds would not only track the price of certain digital tokens but also earn extra rewards. Staking involves holding coins to help validate transactions on a network. It’s like earning interest for supporting the system. The list of altcoins targeted for these staking-focused ETFs is long. It includes names like Cardano (ADA), Avalanche (AVAX), Polkadot (DOT), NEAR Protocol (NEAR), Sei (SEI), Sui (SUI), Bittensor (TAO), and Hype (HYPE). Stellar (XLM) is also on the list.
The firms drew inspiration from their earlier success. REX-Osprey already launched a Solana ETF that uses staking. That product showed strong performance. This has opened the door for them to apply a similar strategy to other digital currencies. It’s a way to get more out of holding crypto assets.
The new applications aren’t just about the U.S. market. Documents show that up to 40% of the funds could be invested in Exchange Traded Products (ETPs) listed overseas. These might include products from companies like 21Shares, CoinShares, and Valour, as reported by Cryptopolitan. This approach helps the funds get global exposure. At the same time, it keeps them under U.S. regulatory rules. To handle tax and legal needs, the fund managers use subsidiaries based in the Cayman Islands. These units allow them to invest in digital assets globally while still operating as regulated U.S. investment firms. This setup balances international reach with local compliance.
New Rules, Tight Timelines for the SEC
The timing of these filings is no accident. On September 17, the SEC approved new, simpler rules for listing products tied to commodities. This includes cryptocurrencies. The change streamlines the approval process. It gets rid of the old, difficult case-by-case review using a form called 19b-4. This should cut down on waiting times a lot. Many believe these new rules are a big step. They could help bring crypto assets into mainstream finance faster. This could make it easier and quicker for ETFs to hit the market.
However, a big problem looms. The U.S. government is facing a partial shutdown. Lawmakers in Congress haven’t agreed on a federal budget. This means less staff at the SEC. It will slow down how quickly they can review applications. REX-Osprey and other firms have deadlines coming up in the next few weeks. Experts worry this situation could be like the 2018 shutdown. That one lasted over a month and stopped many financial plans. It showed how political issues can directly affect the crypto market.
October: A Crucial Month for Crypto ETFs
Looking ahead, October 2025 stands out. The SEC has final deadlines for at least 16 ETF applications in that month. Many of these are for altcoins. Proposals for Solana, XRP, and Litecoin ETFs are among them. This shows a growing interest in a wider range of digital assets.
The many deadlines, along with hopes for faster approvals, could change the game for institutional crypto adoption. But the government’s current issues bring questions about how quickly and widely these changes will happen. Investors and companies will be watching closely. They want to see how financial innovation and U.S. politics play out in the coming crucial month.