03.07.2025 04:14

The launch of the REX-Osprey Solana exchange-traded fund (ETF) on the Cboe BZX exchange marks a significant milestone in the financial world. This innovative ETF, the first of its kind in the US to enable staking, represents a groundbreaking development in the intersection of finance and cryptocurrency.

Following its debut, the price of Solana (SOL) surged, reaching an impressive intraday peak of $149.75, as reported by CoinGecko. This price increase underscores the considerable market interest and anticipation surrounding this novel investment vehicle.

However, the ETF's unique structure has generated some debate. Unlike traditional spot ETFs, the REX-Osprey fund utilizes a C corporation structure, enabling activities such as staking and dividend payouts from yield. This unconventional approach circumvented the typical regulatory approval process, deviating from the standard 19b-4 rule change procedure.

The unconventional nature of the ETF also led to uncertainty on Polymarket, a popular prediction platform. Initial confusion arose regarding the proper resolution of the Solana ETF market, ultimately resolved by Polymarket’s decision to include this non-traditional ETF in their calculations. The incident highlights the complexities and uncharted territory presented by this pioneering financial instrument. This situation further emphasizes the need for clear regulatory guidelines as the cryptocurrency and traditional finance sectors increasingly converge.