REX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage
John: Hey everyone, I’m John, a veteran writer for Blockchain Bulletin, where we break down the latest in Web3, crypto, and blockchain in simple terms. Today, we’re diving into the exciting world of new crypto ETF filings from REX-Osprey and Defiance, covering everything from staking to leveraged options. For readers who want a full step-by-step guide on getting started with crypto, you can also check this exchange guide.
Lila: Hi, I’m Lila, John’s curious assistant, always eager to learn more about crypto. John, what’s the big deal with these ETF filings—aren’t ETFs just like stock funds?
What Are These New ETF Filings?
John: Great question, Lila. On 2025-10-03, REX-Osprey filed prospectuses for 21 spot crypto ETFs with the U.S. SEC, many of which include staking features. Defiance added six more, focusing on leveraged funds up to 3x exposure.
Lila: Spot crypto ETFs? What’s “spot” mean here?
John: Spot refers to funds that hold the actual cryptocurrency, like Bitcoin or Ethereum, rather than futures contracts. Think of it like owning a slice of the real asset through a fund, making it easier for everyday investors to get involved without managing wallets themselves.
Lila: And staking? I’ve heard that term but not sure what it involves.
John: Staking is like earning interest on your crypto by helping secure the blockchain network. For example, in these ETFs, assets like Ethereum could generate rewards, which the fund passes on to investors. It’s a way to make your holdings work harder, similar to a savings account with dividends.
Background on REX-Osprey and Defiance
John: In the past, crypto ETFs were mostly limited to Bitcoin and Ethereum, but firms like REX-Osprey—a collaboration between REX Shares and Osprey Funds—have been pushing boundaries. They’ve already launched products like the first U.S. Ethereum staking ETF about a week ago, as of 2025-10-05.
Lila: Wow, so they’re not new to this. What about Defiance?
John: Defiance is known for innovative funds, including leveraged ones that amplify gains (or losses) by factors like 3x. Their recent filings build on this, targeting crypto volatility for traders who want more action. Both companies are responding to growing demand after approvals for spot Bitcoin ETFs back in early 2024.
Lila: Leveraged sounds risky— like betting on a horse race with borrowed money?
John: Exactly, it’s amplified betting. For instance, if a crypto rises 1%, a 3x leveraged fund could rise 3%, but the downside is just as steep. (No humor here, as we’re talking risks—safety first!)
Details on Staking and Leveraged Funds
John: Let’s break down the filings. REX-Osprey’s 21 ETFs cover single assets like AAVE, ADA (Cardano), ATOM (Cosmos), and ENA, with many offering staking to earn yields. This could bring altcoins—alternative cryptocurrencies beyond Bitcoin—into mainstream investing.
Lila: Altcoins? Are those just the “other” cryptos?
John: Yep, altcoins are any crypto not Bitcoin. For example, ADA powers smart contracts on Cardano, much like Ethereum but with a focus on scalability. Staking in these ETFs means investors might see annual yields around 4-8%, based on network rates, without handling the tech themselves.
John: On the Defiance side, their six funds include 3x leveraged plays on major cryptos, aiming for high-octane returns. These are designed for short-term trading, not long-term holding, as leverage can erode value over time due to volatility.
Current Landscape and Recent Launches
John: As of now, 2025-10-05, the crypto ETF space is booming. REX-Osprey launched the first Ethereum staking ETF last week, allowing U.S. investors to earn staking rewards on ETH through a regulated fund. They’ve also rolled out a Dogecoin ETF and an XRP ETF with options trading, which saw $7,050,000,000 in XRP volume recently.
Lila: Options trading on an ETF? That sounds advanced—what’s that?
John: Options let you buy or sell the ETF at a set price later, great for hedging or speculating. For the XRP ETF (XRPR), it means more ways to play the market, like insurance on your investments. This follows earlier launches, such as Solana staking ETFs in mid-2025.
John: Sentiment on platforms like X shows excitement, with posts buzzing about these filings potentially igniting an “altseason”—a period where altcoins outperform Bitcoin.
Potential Benefits and Risks
John: Benefits include easier access: imagine staking Ethereum without setting up a node— these ETFs handle it. Numbers wise, Ethereum staking currently offers about 3-5% annual rewards, adding passive income.
Lila: But what about the downsides? Crypto can be volatile.
John: Absolutely, risks include market crashes, where leveraged funds could lose value fast. Regulatory hurdles might delay approvals, and staking involves “slashing” penalties if the network validator messes up. Always diversify—don’t put all your eggs in one crypto basket.
- Diversify holdings: Mix Bitcoin, Ethereum, and altcoins for balance.
- Monitor regulations: Keep an eye on SEC updates via official sites.
- Use trusted platforms: Trade ETFs on established exchanges like NYSE.
- Start small: Test with low amounts to learn the ropes.
Looking Ahead
John: Looking ahead, if approved, these could launch by late 2025 or early 2026, based on past timelines. Analysts from Bloomberg note no immediate SEC objections, similar to REX-Osprey’s earlier ETFs set for launch without issues.
Lila: So, more options for investors soon?
John: Yes, potentially flooding the market with liquidity for altcoins. It might even push crypto adoption higher, as seen with Bitcoin ETFs attracting billions in inflows since 2024-01-10.
FAQs
Lila: John, can beginners really invest in these?
John: Sure, through a brokerage account. Just research fees—ETFs often have expense ratios under 1%.
Lila: Are they available worldwide?
John: Mostly U.S.-focused for now, but global investors might access via international brokers. Check local regs.
Lila: What’s the difference between staking and yielding in traditional finance?
John: Staking rewards come from blockchain participation, while traditional yields are from interest or dividends—both generate income, but crypto’s is decentralized.
John: Whew, that covers the latest on these ETF filings—it’s an exciting time as crypto meets traditional finance, making it more accessible for all. Remember, stay informed and invest wisely. And if you’d like even more exchange tips, have a look at this global guide.
Lila: Thanks, John—key takeaway: These filings could make crypto investing simpler and more rewarding, but always do your homework!
This article was created using the original article below and verified real-time sources:
- REX-Osprey and Defiance file 27 crypto ETFs, including staking and 3x leverage
- REX-Osprey and Defiance Fund Managers File a Series of Spot Crypto ETFs With U.S. SEC
- Ethereum staking ETF goes live in the US through REX-Osprey
- REX-Osprey crypto ETFs to launch Friday barring SEC objection — Bloomberg analyst