03.07.2025 01:51
The inaugural U.S. spot Solana exchange-traded fund (ETF) incorporating staking capabilities has commenced trading, generating significant early interest. A robust $8 million in trading volume was recorded within the initial twenty minutes of its launch, as reported by James Seyffart, Bloomberg's senior ETF analyst, on X (formerly Twitter). Seyffart characterized this initial trading activity as a positive indicator for a novel ETF.
This innovative ETF, the REX-Osprey SOL + Staking ETF (SSK), provides investors with direct exposure to Solana (SOL) while simultaneously offering the potential for staking rewards. A substantial portion – approximately 80% – of the fund's assets are invested in spot SOL, with over half actively staked to generate on-chain yield. This staking strategy currently yields an attractive annual return estimated between 7% and 7.3%, directly benefiting investors. The remaining portfolio holdings encompass other Solana exchange-traded products, primarily from international markets, and a minor allocation to liquid staking assets such as JitoSOL.
A key aspect of the ETF's structure is its classification as a C-corporation under the Investment Company Act of 1940. This strategic legal maneuver proved crucial in navigating regulatory complexities that have hindered or prevented the approval of similar cryptocurrency funds. Although this structure facilitates operations and the distribution of staking rewards, it does result in less advantageous tax implications than traditional ETF structures, a factor institutional investors should carefully consider. The fund's management fee is set at 0.75%.
The ETF's successful launch, however, wasn't without its challenges. The regulatory pathway proved arduous, highlighting the ongoing complexities of navigating the evolving landscape of cryptocurrency investment products in the United States. The achievement underscores a significant step forward for crypto ETFs and offers a compelling investment vehicle for those seeking exposure to Solana and its staking rewards.
