The crypto ETF revolution just entered its next phase with the debut of America’s first Solana staking exchange-traded fund, marking a historic milestone that combines traditional investment accessibility with blockchain yield generation.
The REX-Osprey Solana + Staking ETF (SSK) launched Wednesday on the Cboe BZX Exchange, capturing $12 million in first-day inflows and $33.6 million in trading volume—a “healthy start” that signals growing institutional appetite for yield-generating crypto products.
This groundbreaking fund represents more than just another crypto ETF; it’s the first U.S.-listed product to offer investors direct exposure to Solana while simultaneously generating staking rewards.
Staking ETF Victory
Unlike existing spot Bitcoin and Ethereum ETFs, SSK operates under the Investment Company Act of 1940, requiring a qualified custodian to hold the underlying assets. Anchorage Digital, the only federally regulated bank authorized to both custody and stake digital assets, serves as the exclusive custodian and staking partner.
The ETF’s debut comes at a pivotal moment for crypto regulation and institutional adoption. While the Securities and Exchange Commission initially objected to the product in late May, REX Shares and Osprey Funds successfully navigated regulatory hurdles by structuring the fund to invest at least 40% of its assets in other exchange-traded products, mostly domiciled outside the US. This innovative approach allowed them to sidestep the standard 19b-4 filing process that has delayed other crypto ETF applications.
The timing couldn’t be more strategic. With Solana trading around $153—up 4.6% over 24 hours but still 48% below its January peak of $293—the ETF provides investors with a way to potentially benefit from both price appreciation and staking yields. The fund’s structure requires staking at least half of its assets, generating additional returns for shareholders while contributing to network security.
Crypto Market Response
While the $12 million first-day inflow represents a solid start, it pales in comparison to the $4.6 billion recorded by spot Bitcoin ETFs during their January 2024 debut. Despite the modest initial response, the ETF’s launch carries significant implications for the broader crypto ETF landscape.
The fund’s innovative structure demonstrates how asset managers are finding creative solutions to regulatory constraints. By operating under the Investment Company Act of 1940 rather than seeking traditional spot ETF approval, REX-Osprey has created what some describe as a “regulatory end-around” that could inspire similar products. This approach may accelerate the timeline for other altcoin ETFs, particularly those incorporating staking mechanisms.
Solana’s price reaction to the ETF launch was muted, with the token gaining 3.6% over 24 hours—modest compared to other high-cap altcoins. However, Solana CME futures experienced “record demand,” with open interest hitting $167 million following the ETF launch, signaling rising institutional interest beyond the ETF itself.
For investors, the REX-Osprey Solana + Staking ETF represents a new paradigm in crypto investing—one that combines the accessibility of traditional ETFs with the yield-generating potential of blockchain staking, all within a regulated framework that provides institutional-grade custody and security.
