First-Ever Solana Staking ETF: Solana’s Leap Into Institutional Finance Starts Now
Launching on July 2, the REX-Osprey Solana Staking ETF will trade under the ticker SSK. Staking Solana tokens to authenticate blockchain transactions will give investors incentives, making it the first ETF in the United States to do so.
Bloomberg reports that a source familiar with the situation has given the new yield-chasing cryptocurrency fund following Solana the go-ahead to launch. By allocating 40% of its holdings to other Solana exchange-traded products, the fund has gotten around regulatory restrictions, according to Eric Balchunas, an ETF analyst at Bloomberg.
Crypto Breakthrough: Solana Staking ETF Set to Disrupt U.S. Markets
The SEC first objected when the REX-Osprey product cleared an initial registration, creating regulatory obstacles. The main question was whether the ETF met federal law’s requirements for investment companies. In order to reach a compromise, the issuers decided to allocate at least 40% of their assets to other ETFs, the majority of which were based outside of the US.
The move to allow ETFs that offer staking yield is a further step in the marriage we are seeing between public markets and the crypto economy,
Browse PostsStrahinja Savic, head of data and analytics at FRNT Financial
It was another instance, he continued, of how the Trump administration is paving the way for cryptocurrency to integrate into the American economy through public markets. Instead of continuing to be a marginalized asset class, traditional investors are increasingly able to access cryptocurrency.
Solana Surges on ETF Buzz, But Correction Brings Price Back Below $150
In response to the announcement, Solana prices surged 5.3%, rising from an intraday low of $150 to reach $158 in just a few minutes. But the impetus was lost, and in the hours that followed, the asset fell back to $148.75.
With a 7% gain from the same period last week, SOL has had a strong week as altcoins and cryptocurrency markets have shown indications of revival. Despite this, SOL has fallen over 50% from its peak in January, when the blockchain was mostly used for memecoins.
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