- REX-Osprey to launch first US Solana staking ETF Wednesday
- ETF offers SOL price exposure and passive staking rewards
- Solana price rises 5% as ETF approval fuels market optimism
Solana is about to make history in the ETF space. The REX Shares and Osprey Funds-supported first US-based Solana staking ETF, is scheduled to launch on Wednesday. After the news, the SOL price briefly surged by 5% before settling with a 1.3% gain at $151.
REX-Osprey Staked Solana ETF Structure
The ETF will offer investors exposure to Solana as well as receive passive income in staking rewards. This makes it different from other spot ETFs, which only track a price but do not provide any yield. According to Osprey, the fund is fully approved and ready to begin trading midweek.
REX Shares had filed a final update with the SEC inquiring whether there were any comments on the proposal. Shortly after, the asset manager hinted at an imminent launch via social media. Osprey later confirmed that the ETF would go live this Wednesday.
The product uses a C-Corporation structure which has raised concerns for regulators in the current ETF framework. However, the SEC has not raised further objections after reviewing the latest filings. This lack of pushback suggests that the structure is now in compliance.
REX and Osprey will offer the first staked crypto ETF in the United States. It provides investors with exposure to SOL as well as staking returns without the need to manage wallets or nodes. This may attract institutions seeking an easy and compliant method to enter crypto markets.
Also Read | Solana ETFs Could Launch This Summer with Invesco and Galaxy in the Lead
Price Action
The launch of the ETF has contributed to the market optimism on Solana. The price of the token rose to $158 in the morning of Monday. According to CoinGecko, SOL is still up over 12% in the past seven days.
Source: CoinGecko
At its current price, Solana has a market capitalization of around $83.5 billion, making it the sixth-biggest cryptocurrency. Although it is still 46% below its all-time peak, the ETF mania has sparked the buying interest. Other analysts are of the opinion that this launch would initiate a series of altcoin-based ETFs.
Also Read | Solana Bullish Breakout: Will ETFs Push Prices Beyond $200?
Regulatory Shift Towards Staking in ETFs
In May, the SEC said that staking in itself does not violate securities laws but delayed rulings on certain staking ETFs. The REX-Osprey approval implies that the arena is open to more innovative fund structures.
This marks a major milestone for the industry observers and the overall crypto market. The Bloomberg’s ETF analysts have observed that Solana may be the first altcoin fund this summer. There are more applications of ETFs in the pipeline that target other staking-enabled tokens.
Also Read | REX-Osprey Nears Launch of Solana and Ethereum Staking ETFs With SEC Approval