REX-Osprey Solana ETF Debuts: New ETF Sees Impressive First-Day Performance
With $12 million in inflows, the first Solana staking exchange-traded fund (ETF) in the US ended its first trading day. This is encouraging for ETFs that have the ability to stake cryptocurrency.
The REX-Osprey Solana Staking ETF started trading on the Cboe BZX Exchange on Wednesday, according to Bloomberg ETF analyst Eric Balchunas. It saw $12 million in inflows and $33 million in trading volume on its debut day.
The fund gives investors direct access to spot Solana and staking rewards. It is traded under the symbol SSK. It is the first cryptocurrency staking ETF authorized in the US with this capability.
SEC Pushback Can’t Stop REX-Osprey’s Historic Solana ETF Launch
In addition, Balchunas remarked on the outstanding first-day volumes, pointing out that they beat XRP futures ETFs and Solana futures ETFs. He did note, though, that the volumes were far lower than those of the initial Bitcoin and Ether funds. On their debut day in January 2024, US-listed spot Bitcoin ETFs saw a total of $4.6 billion in shares exchanged.
The launch of crypto staking ETFs is a defining moment for digital assets and a significant step forward in full access to the crypto ecosystem,
Anchorage Digital co-founder Nathan McCauley
After completing an initial registration, the Securities and Exchange Commission opposed the REX-Osprey fund in late May, creating regulatory obstacles. The question was whether the product met securities laws’ requirements to be considered an investment business. By allocating at least 40% of its assets to other ETPs, the majority of which were based outside of the US, the company was able to circumvent this restriction.
Is REX-Osprey’s Solana Fund Really a Spot ETF? The Debate Heats Up
Because it is formed under the Investment Company Act 1940, REX-Osprey’s Solana ETF avoids the typical 19b-4 filing process, in contrast to spot Solana ETFs that still need SEC clearance. The president of NovaDius Wealth Management, Nate Geraci, referred to it as a regulatory end-around in May. There is disagreement, meanwhile, over whether the product qualifies as a conventional spot Solana ETF.
The recent performance of the ETF, meanwhile, may provide insight into institutional demand for a spot Solana ETF, which could debut this year. A 95% possibility that spot Solana ETFs will be permitted by the end of the year was recently estimated by Seyffart and Balchunas.
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