Cardano has your ETF on stake if your request is approved

Capital managers Rex Advisors and Osprey Funds have been announced to the U.S. Securities Exchange and Securities Commission (SEC).

The product, called the Rex-Sosprey Ada + Staking ETF, will, if approved, be the first ADA-related quoting fund to incorporate staking functionality for the U.S. market.

This fund aims to reflect the performance of reference assets without fees or associated expenses. According to the documents mentioned in the SEC, the ETF structure Allows re-transfer of rewardscustodian rates and validator discounts.

Cryptopedic As defined by Cryptopedic, staking is the act of leaving cryptocurrencies deposited in an intelligent contract, wallet, or exchange in order to receive a profit. In the context of ETFs, staking means that the fund uses ADA to participate in validating trades and generate additional rewards.

Rex Advisers acts as an investment advisor and assumes normal operating expenses, excluding advisory fees, taxes and transaction costs.

The proposal stipulates that at least 80% of net assets be invested directly in Cardano or products that grant exposure to its performance. These include other foreign quoted funds that replicate or maintain assets, such as 21Shares Cardano ETP (Switzerland), Coinshares Cardano Staked ETP (Germany), and Virtune Cardano Staked ETP (Sweden). The rest can be used for liquidity or derivative instruments to optimize portfolio managementthe docs say.

The Fund also contemplates the use of a subsidiary registered in the Cayman Islands, Rex Spray Ada + Staking (Cayman) Portfolio SP. This structure seeks to maintain exposure to digital assets within the US regulatory framework based on the 1940 Investment Society.

For operational matters, the ETF may delegate the management of its ADA holdings to a cryptocurrency service provider that performs validation on the Cardano network. The blocking period for participation is estimated to be approximately 10 days. During that period, Assets are subject to market fluctuations without the possibility of transfer.

The SEC must review the application to determine whether the product meets registration requirements Prior to final approval and quotation in the US market.