Rex-esprey Crypto ETFs: 27 Options + Delay Info

REX Osprey and Defiance Launch 27 Crypto ETFs, Including Staking

4 October 2025 at 07: 26

Reading time: 3 minutes

The recent wave of crypto fund prospectuses reflects a notable shift in the market. REX-Osprey has filed a whopping 21 prospectuses for crypto funds, while Defiance presented six additional products to regulators on October 3rd. This demonstrates the growing interest and need for innovative investment opportunities within the crypto space, especially as regulation becomes more important.

REX-Osprey's prospectuses cover a range of single-asset strategies, including popular crypto assets like AAVE, ADA, ATOM, and ENA. Some funds even offer staking options (staking is the process of holding crypto to verify transactions and thus earn rewards). This reflects a growing awareness that investors are not only looking for price appreciation but also for ways to play an active role in generating returns.

The Future of Leveraged Crypto Funds

Defiance's filings offer a glimpse into the future of leveraged fund structures in the crypto space. With six leveraged funds, three of which focus on long positions in Bitcoin, Ethereum and Solana, and the other three on short exposure, creates an exciting playing field for sophisticated investors. All six funds offer 3x leverage, which immediately attracts attention. However, there is some controversy surrounding the applicability of this 3x leverage, especially now that the new rules for leveraged exchange-traded products (ETPs) impose stricter guidelines.

Bloomberg analyst James Seyffart argues that using 3x leverage could be problematic under current regulations. The intention seems to be to achieve this level of leverage through options, despite the standard 2x limit. These developments demonstrate not only the creativity of fund providers but also the associated risk. Understanding these structures is crucial for investors, given the potentially high volatility and risks associated with leveraged products.

The Impact of Regulation on Crypto ETPs

The SEC's recent September 17th approval of generic listing standards for crypto-related ETPs has paved the way for a wide range of new offerings. These changes are intended to accelerate the approval process by removing 19b-4 approvals and shifting the focus to the effectiveness of S-1 filings. This means that investors can expect the approval of altcoin ETFs in the near future to no longer be a matter of suitability, but rather a matter of timing.

Bloemburg's senior ETF analyst Eric Balchunas indicates that it's now a matter of "when," not "if," these approvals will occur. However, the current standstill due to the US government shutdown and the subsequent limited operations of the SEC is delaying the approval process. It's a waiting game, with innovative offerings like those from REX-Osprey and Defiance on hold until the SEC is operational again.

Once the SEC resumes its activities, the applications already submitted and the revised regulations could lead to faster approvals. The focus has shifted from winning one-time rule changes to expediting S-1 filings, which will be crucial in the increasingly competitive crypto fund market.

Frequently Asked Questions

What are the key features of REX-Osprey's new crypto funds?
REX-Osprey has launched a diverse range of 21 crypto funds, focusing on single-asset strategies such as AAVE, ADA, ATOM, and ENA, and offering some funds with staking options.

How does the leveraged structure of the Defiance funds work?
Defiance's six leveraged funds offer 3x leverage on crypto assets like Bitcoin, Ethereum, and Solana, meaning investors can triple their exposure to price movements, but this also carries higher risks.

What does the SEC's approval mean for the future of crypto ETPs?
The SEC's adoption of generic listing standards has opened the door for expedited approval of altcoin ETFs, making the process less reliant on complex approval procedures.

Share this article:

Disclaimer: The information on Block 9 is for general informational and educational purposes only. While we strive to provide up-to-date, correct and relevant content, we make no warranties as to the completeness, accuracy or reliability of the information provided. All content on this website, including articles, analyses, opinions and other publications, is for general information purposes only and does not constitute professional or legal advice in any way, including but not limited to financial, investment or tax advice.

Block 9 makes no guarantees or representations as to any possible results or returns that may arise from the use of information on this website. Nothing on this website should be interpreted as a recommendation to buy, sell or hold any particular asset, including but not limited to cryptocurrencies, tokens or other financial instruments.

The opinions and views expressed in contributions by editors, external authors or community members are strictly personal and do not necessarily represent the views or policies of Block 9 as a platform. Block 9 accepts no liability for any loss or damage – direct or indirect – resulting from the use of (or reliance on) the information published on this website.

Investing in cryptocurrencies and other digital assets involves significant risks. The value of such assets can fluctuate significantly, and there is a chance that you could lose (some of) your investment. We strongly recommend that you always do your own research (DYOR) and seek independent advice from a qualified financial advisor before making any financial decisions. By using this website, you agree to this disclaimer and accept that Block 9 is not responsible for your investment choices or the results thereof.