Ethereum Gets First U.S. Staking ETF: REX Osprey ESK Launches

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First U.S. Staking ETF

REX Shares officially launched the REX Osprey ETH + Staking ETF (ticker: ESK) on September 25, introducing the first U.S. ETF that combines direct exposure to Ethereum (ETH) with on-chain staking rewards under the 1940 Investment Company Act.

This landmark product offers investors access to Ethereum’s proof-of-stake (PoS) network while distributing 100% of the actual staking rewards directly to shareholders. Designed with monthly payouts, the ETF appeals to both retail and institutional investors seeking growth potential and passive income from crypto, without the need to self-custody digital assets.

A New Era for ETH ETFs

According to REX Financial CEO Greg King, ESK allows investors to gain Ethereum exposure and staking rewards in the most established ETF format available in the U.S. market. The ETF is structured using a blend of directly staked ETH and exchange-traded products that also stake ETH, offering a regulated bridge between traditional finance and crypto.

The move follows REX Osprey’s earlier launches, including the XRP-focused ETF (XRPR) and Dogecoin exchange-traded fund (ETF) , marking another step in merging cryptocurrency with mainstream financial products.

Institutional Interest Rising for ETH ETHs

The ETF’s debut came during heightened volatility in Ethereum’s market. On launch day, ETH briefly dipped below $4,000 for the first time since August 7, falling 4% in 24 hours. The day prior, $76.9 million flowed out of existing Ethereum-related ETFs.

Despite these outflows, institutional holdings of ETH surged to $1.19 billion, highlighting strong demand for regulated staking products like ESK. Analysts see this as a clear shift in investor appetite, away from traditional crypto ETFs and toward income-generating, compliance-friendly products.

If this trend continues, ESK could pave the way for more hybrid products that blend regulatory security with yield opportunities, potentially setting a new standard for crypto investing in the U.S.

 

By Patrick Johnson

Patrick Johnson is a seasoned crypto journalist and analyst with a sharp eye for emerging trends in blockchain, DeFi, NFTs, and Web3 innovation. With a background in tech writing and years of experience tracking digital assets, Patrick breaks down complex topics into clear, actionable insights for investors, builders, and curious readers alike. His work spans market analysis, crypto regulation, decentralized finance ecosystems, and interviews with founders shaping the next phase of the internet. Patrick's writing has appeared in leading crypto publications and has earned a reputation for depth, clarity, and a no-hype approach to crypto journalism. When he’s not decoding the latest protocol upgrade or reporting on DAO governance shifts, you’ll find him experimenting with smart contracts or hiking off-grid, because even crypto authors need to unplug sometimes.