The first US-based Solana ETF with integrated staking functionality has officially launched, capturing significant attention from market observers with an impressive $8 million in trading volume within its first 20 minutes.
James Seyffart, a senior ETF analyst at Bloomberg, shared the news in a post on X (formerly Twitter). He described the initial trading activity of the Rex-Osprey Sol + Staking ETF—trading under the ticker SSK—as a healthy start for a new ETF. This product marks a milestone as the first of its kind to offer combined Solana exposure and staking rewards within a regulated US exchange-traded structure.
How the Rex-Osprey Sol + Staking ETF Operates
This innovative ETF offers investors direct exposure to Solana (SOL) while generating staking yields. Approximately 80% of the fund’s assets are allocated to spot SOL holdings. Fund managers actively stake about half of these assets to generate on-chain rewards.
Investors benefit directly from these staking returns, which currently offer an estimated annual yield between 7% and 7.3%. The remainder of the portfolio includes other Solana-based exchange-traded products, primarily from non-US markets, along with liquid staking tokens such as JitoSOL.
A key structural aspect is the fund’s registration as a C-corporation under the Investment Company Act of 1940. This approach helped Rex and Osprey navigate regulatory hurdles that have previously stalled or prevented the launch of similar crypto-based investment products.
While this structure provides operational clarity and a straightforward method for distributing staking rewards, it also introduces less favorable tax treatment compared to conventional ETF models—a trade-off institutional investors must consider. The fund carries a management fee of 0.75%.
👉 Explore staking investment strategies
Regulatory Journey to Launch
The path to launch wasn’t without challenges. Rex and Osprey initially filed for registration earlier in 2025 with a model combining physical cryptocurrency holdings with staking income.
However, on May 30, the SEC requested a delay in the launch, citing questions around the fund’s classification. In response, the teams restructured the product as a C-corporation to address these regulatory concerns. By June 27, the SEC informed the issuers it had no further comments—a signal widely interpreted within the industry as an informal approval. The fund began trading shortly afterward.
Broader Context for Solana ETF Products
This landmark launch occurred just one day after the SEC approved the Grayscale Digital Large Cap Fund (GDLC), which includes Solana alongside Bitcoin, Ethereum, XRP, and Cardano.
Industry analysts like Seyffart had previously suggested that a fund like GDLC would likely emerge first, paving the way for more specialized Solana ETF products. With both GDLC and the Rex-Osprey ETF now trading, market participants are growing more confident about the potential approval of additional Solana-focused ETFs.
This optimism is reflected in the growing list of Solana ETF applications currently under review by the SEC. Major financial firms including VanEck, Franklin Templeton, Galaxy Digital, Fidelity, and Grayscale have all submitted proposals.
Although the SEC has not yet approved these applications, it continues to review updated filings and has pushed final decision deadlines to late July. Some applicants have already amended their proposals to include staking features and in-kind redemption models.
Frequently Asked Questions
What is a staking ETF?
A staking ETF is an exchange-traded fund that not only holds a cryptocurrency but also participates in staking—a process that supports network operations and earns rewards. These rewards are distributed to investors as yield, combining potential price appreciation with income generation.
How does the Rex-Osprey Sol ETF generate yield?
The fund stakes approximately half of its Solana holdings, earning staking rewards on the blockchain. These returns are then passed on to investors, currently providing an estimated annual yield between 7% and 7.3%.
What are the risks of investing in a crypto staking ETF?
Risks include cryptocurrency price volatility, regulatory changes, staking penalties (like slashing), and tax implications. The C-corporation structure of this ETF may also lead to less efficient tax treatment compared to other ETF models.
How is this Solana ETF different from a Bitcoin ETF?
Unlike Bitcoin ETFs, which typically only hold the asset, this Solana ETF includes an active staking component that generates additional yield. It also uses a C-corporation structure to comply with regulatory requirements specific to staking.
Are other Solana ETFs expected to launch?
Yes, several asset managers have filed applications with the SEC for Solana ETFs. Many are awaiting regulatory approval, with decisions expected in the coming months.
Can international investors access this ETF?
The Rex-Osprey Sol + Staking ETF is traded on a US exchange, making it accessible to investors who can trade US-listed securities, though they should be aware of their local regulations and tax policies.
This successful launch represents a significant step forward in the integration of cryptocurrency-based financial products within traditional markets, offering investors new ways to gain exposure to digital assets like Solana while earning rewards through staking.