The first Solana staking exchange-traded fund (ETF) in the United States concluded its inaugural trading day with $12 million in inflows—a positive signal for cryptocurrency staking-enabled ETFs.
The REX-Osprey Solana Staking ETF debuted on the Cboe BZX Exchange on Wednesday, recording $33 million in trading volume alongside the $12 million inflows, according to Bloomberg ETF analyst Eric Balchunas.
Trading under the ticker SSK, the fund offers investors direct exposure to spot Solana (SOL) as well as staking yield rewards. This makes it the first approved cryptocurrency staking ETF available in the U.S. market.
James Seyffart, another Bloomberg ETF analyst, described it as a "healthy start," noting that the fund reached $8 million in trading volume within just the first 20 minutes.
Balchunas also commented on the notable first-day volume, stating that it was "well above" the initial performances of Solana futures ETFs and XRP futures ETFs, though still significantly lower than the record-setting launches of spot Bitcoin (BTC) and Ethereum (ETH) ETFs earlier in the year.
For context, U.S.-listed spot Bitcoin ETFs recorded a collective $4.6 billion in share trading volume on their first day of trading in January 2024.
"The introduction of a cryptocurrency staking ETF marks a pivotal moment for digital assets and a major step toward full access to the crypto ecosystem," said Nathan McCauley, co-founder of Anchorage Digital, which serves as the staking and custody partner for the REX-Osprey ETF.
Regulatory Hurdles and Structure
The launch of the REX-Osprey fund was not without challenges. The U.S. Securities and Exchange Commission (SEC) initially raised objections after clearing the fund’s registration in late May.
The primary regulatory concern was whether the product qualifies as an "investment company" under securities laws. REX-Osprey addressed this by structuring the fund so that at least 40% of its assets are invested in other exchange-traded products (ETPs), most of which are established outside the United States.
Unlike a prospective spot Solana ETF—which would still require explicit SEC approval—the REX-Osprey Solana ETF is structured under the Investment Company Act of 1940. This allowed it to bypass the standard 19b-4 filing process.
In May, Nate Geraci, President of NovaDius Wealth Management, referred to this tactic as a "regulatory workaround." However, some industry observers have debated whether the fund should truly be categorized as a traditional spot Solana ETF.
Growing Momentum for Altcoin ETFs
The performance of this new ETF may offer insight into institutional demand for a future spot Solana ETF, which could potentially be launched later this year.
Seyffart and Balchunas recently estimated a 95% probability that a spot Solana ETF will be approved before the end of the year.
"We expect a new wave of ETFs in the second half of 2025," Seyffart stated earlier this week, predicting that spot XRP, Solana, and Litecoin (LTC) products will all gain regulatory approval by year-end.
In a related move, the SEC approved Grayscale’s application to convert its Digital Large Cap Fund into an ETF on Tuesday. That fund consists of a portfolio of the top five digital assets by market capitalization.
Moderate Market Response
Solana’s market price showed only a moderate reaction to the news. Over the past 24 hours, SOL has increased by 3.6%, underperforming most other large-cap altcoins.
At the time of writing, SOL is trading near $153, reflecting a 5% gain over the past week. Despite this, the token remains 48% below its peak value from January.
That said, Solana CME futures have seen "record demand indicating growing institutional interest," according to SolanaFloor. Open interest reached $167 million following the ETF’s launch, suggesting that professional traders are positioning for future volatility.
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Frequently Asked Questions
What is a staking ETF?
A staking ETF allows investors to gain exposure to a cryptocurrency that utilizes proof-of-stake while also earning rewards generated through the staking process. It combines the tradability of an ETF with the yield potential of staked assets.
How does the REX-Osprey Solana ETF work?
The ETF holds physical Solana (SOL) and participates in staking activities to generate additional yield. This income is distributed to investors, providing a return on top of any price appreciation of the underlying asset.
Why is this ETF significant for the crypto market?
It represents a bridge between traditional finance and decentralized staking mechanisms. Its successful launch could pave the way for more cryptocurrency-based income products and increase institutional participation.
Can U.S. investors buy this ETF?
Yes, the ETF is available to U.S. investors through traditional brokerage accounts, making Solana staking accessible without the technical steps typically required in decentralized finance.
What’s the difference between this and a spot Solana ETF?
A spot Solana ETF would hold SOL directly but may not include staking. The REX-Osprey product is a staking ETF, meaning it aims to produce yield, whereas a pure spot ETF would track only the price.
Will this ETF influence Solana’s price?
While the initial price reaction was mild, sustained inflows and staking activity could reduce circulating supply over time, potentially creating upward price pressure and improving network security.