REX-Osprey Launches First Solana Staking ETF

The Launch

This launch signals a growing institutional appetite for alternative digital assets beyond Bitcoin and Ethereum. But what sets this ETF apart isn’t just that it tracks Solana, it’s that it stakes the tokens too, offering investors a yield that would otherwise be inaccessible in traditional brokerage accounts.

Unlike previous crypto ETFs that mirrored only price movements, SSK integrates Solana staking directly into its structure. Around 50% of the fund’s holdings are actively staked, with projected annual yields exceeding 7%. Anchorage Digital, a regulated crypto custodian, handles the fund’s staking operations, giving investors exposure to staking rewards without the complexity or custody risk typically associated with self-managed crypto wallets.

This approach brings Solana’s native yield generation into a compliant and regulated investment wrapper. The ETF also adheres to the Investment Company Act of 1940, ensuring it meets stringent standards on fund structure, governance, and investor protections.

Let’s Talk Numbers

The numbers tell a compelling story. SSK saw $8 million in trading volume within the first 20 minutes of launch. By the end of the day, that figure had grown to $33 million, placing the ETF among the top-performing debuts in the crypto space, even surpassing the first-day volumes of XRP and Ether futures ETFs launched in 2024.

While the total still pales in comparison to the massive $4.6 billion first-day volume for Bitcoin spot ETFs in early 2024, SSK’s performance marks an important shift in how investors perceive altcoins and staking as viable investment tools.

The ETF’s $12 million in inflows shows real investor interest in Solana as more than a speculative asset. For context, several Ethereum staking proposals have yet to clear SEC hurdles, giving SSK a first-mover advantage in staking-based crypto ETFs.

The launch had a direct effect on Solana’s market price. Following several days of sideways movement, Solana rallied nearly 5% to cross the $153 mark shortly after SSK went live. The psychological boost from institutional-grade access, combined with staking yield potential, reignited bullish momentum in the market.

Market Analysis

Market analysts expect continued upward pressure, with price forecasts ranging from $160 to above $200 over the coming weeks if volume and investor sentiment hold. Some even see the ETF as a stepping stone toward a broader acceptance of Solana as a core holding for crypto portfolios.

What makes SSK’s launch even more remarkable is its successful navigation of the U.S. regulatory maze. Unlike Bitcoin and Ethereum spot ETFs, which fall under the Securities Act of 1933, SSK utilizes a 1940 Act structure. This move allowed the fund to sidestep direct resistance from the SEC regarding staking while still maintaining compliance and transparency.

To further address regulatory concerns, the ETF also holds a portion of its assets in non-U.S. Solana exchange-traded products and derivative contracts, providing diversification and risk mitigation.

This hybrid structure may serve as a template for future staking-focused ETFs. With Ethereum, Polkadot, and Cardano also built around proof-of-stake models, several fund managers are watching closely to see if this breakthrough opens the door for more products.

REX-Osprey may be first, but they won’t be alone for long. Asset management giants like Fidelity, Franklin Templeton, 21Shares, VanEck, and WisdomTree all have pending applications for Solana ETFs, some of which aim to offer similar staking benefits. As competition heats up, investors are likely to see innovation in fee structures and expanded features.

However, SSK’s current expense ratio of 1.4%—split between management fees and staking-related tax overhead—may be a hurdle. Spot Bitcoin ETFs now average under 0.3%, so investors with cost sensitivity may wait for lower-fee alternatives from larger firms.

Still, being first to market carries weight, and REX-Osprey now has a head start in both branding and asset accumulation.

What It Means for the Future of Crypto ETFs

The successful launch of a Solana staking ETF in the U.S. sets a new precedent. It shows that the SEC is warming up to altcoin-based products, provided they meet strict compliance and structural standards. More importantly, it proves there’s an appetite for yield-generating digital assets in a regulated framework.

As institutional interest deepens and more investors seek exposure beyond Bitcoin and Ethereum,
products like SSK offer a glimpse into the next phase of crypto ETF evolution.