REX-Osprey is set to launch the first US Solana staking ETF on Wednesday, after the US Securities and Exchange Commission raised no objections to its structure.
The first ever Solana staking exchange-traded fund (ETF) in the United States is due to begin trading tomorrow, 2 July. Launched by REX-Osprey, the ETF (SSK) received approval from the US Securities and Exchange Commission (SEC), following a detailed review.
Officials from the SEC raised no further objections, allowing the product to go live in early July. Its approval may open the door for other staking ETFs linked to blockchains such as Ethereum or Avalanche in the future.
Unlike regular ETFs, it will give investors access to Solana (SOL) while also earning rewards from staking. This could provide extra income opportunities from holding SOL, without needing to use crypto wallets or understand complex blockchain tools.
The fund will be set up as a C-corporation, which is a common type of company under US law. It is a structure that lets the ETF collect staking rewards and treat them as company income. Those rewards can then be shared with investors in a legal and tax-friendly way.
This setup avoids many of the problems other staking ETFs have faced in the past, including questions about how the rewards should be taxed or whether they follow investor protection laws.
Solana’s price increased by more than 5% following the announcement, reaching $161 before settling between $153 and $158. While current market interest is high, some risks remain, with a large amount of SOL, valued at over $585 million, set to be unlocked soon. This could lead to greater selling pressure, with strong interest in the ETF being needed to balance this out.
Why is the first Solana staked ETF important?
The first Solana staked ETF is an important development, not just in terms of the price of SOL. It represents a new step in how crypto features like staking can be added to traditional financial products.
Previously, similar ETF plans were delayed due to issues around taxes and investor protection. By investing some of its assets in other Solana funds, this ETF has found a way to meet the rules, while still offering potential staking returns.
Some industry experts believe this could be the first of many similar ETFs. As digital assets continue to grow, more investors are searching for simple, regulated ways to enter the industry. Offering staking rewards through established brokerage platforms is a big step in that direction.
Decisions on other crypto ETFs expected soon
Aside from the REX-Osprey launch, other cryptocurrency-related ETFs are awaiting final approval. This week, the SEC officially delayed its decision on the spot Dogecoin ETF application by a company called 21Shares.
The government agency stated that it needs a further 45 days to approve or deny the spot Dogecoin ETF. Officials will further evaluate whether the proposed ETF meets listing and trading requirements under Nasdaq rules, according to a US SEC filing. Grayscale and Bitwise are other issuers seeking approval from the SEC.
Earlier in the year, a Bitcoin ETF linked to Donald Trump was submitted to the SEC for approval. The Truth Social Bitcoin ETF was created with the aim of tracking the price of Bitcoin, giving retail investors an alternative way to gain exposure to the cryptocurrency without holding the asset directly.
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