Investment firms REX Shares and Osprey Funds jointly launched today, September 25, the first exchange-traded fund (ETF) for ether (ETH), the Ethereum cryptocurrency, that includes staking in the United States.

This fund, which operates under the ticker ESK, is described by the companies as “the first U.S. fund to offer investors cost-effective and convenient exposure to Ethereum spot through a 1940 Act ETF structure.”

The financial instrument allows access to the price of ETH and obtains monthly returns from staking, a process by which ETH holders lock their assets on the network to validate transactions and receive rewards in return.

REX-Osprey assured that “all staking rewards received by the pool are transferred directly to investors, with no portion retained by REX or Osprey.” The ETF was registered under the Investment Company Act of 1940, so it operates similarly to a mutual fund, although it is worth clarifying that it is not a spot ETF, unlike the bitcoin (BTC) and ether ETFs approved by the United States Securities and Exchange Commission (SEC) in 2024 under the Securities Act of 1933.

REX-Osprey leverages the "spot" label as a marketing ploy to associate its launch with the prestige of Bitcoin and Ether ETFs, even though the mechanics and actual exposure level are different.

The companies are also responsible for the launch of the first dogecoin and XRP ETF last week. Meanwhile, firms such as BlackRock, Fidelity, and Franklin Templeton are awaiting SEC approval for their Ethereum (truly "spot") staking ETFs, following an extension established two weeks ago by the regulatory body.