The US SEC questions the compliance of Ethereum and Solana ETFs

According to a report by Golden Finance, the US Securities and Exchange Commission (SEC) has raised questions about two proposed ETFs related to Ethereum and Solana on the second day after stating that most cryptocurrency pledges are not within the scope of securities laws. Last Friday, the SEC warned that two proposed ETFs linked to Ethereum and Solana may not meet the legal definition of an investment company, raising concerns about their registration and potential listing eligibility. In a letter to the legal counsel of ETF Opportunities Trust, the SEC stated that there are still unresolved questions from staff regarding whether the REX Osprey ETH and SOL ETF (including pledge components) primarily invest in securities as required by the 1940 Investment Company Act. ETF Opportunities Trust is an open-ended investment company headquartered in Delaware, serving as a legal vehicle for initiating multiple exchange traded funds, including those managed by REX. According to US law, a fund is considered an investment company if it primarily engages in securities investment or trading, or if more than 40% of its total assets are invested in securities.