Exciting news for crypto enthusiasts as the United States prepares to welcome its first Solana Staking ETF. The REX-Osprey Solana Staking ETF, under the ticker SSK, is set to launch on July 2. This groundbreaking ETF will offer investors the novel opportunity to earn rewards by staking Solana tokens to validate blockchain transactions.
According to Bloomberg, the new crypto fund tracking Solana has been greenlit for its much-anticipated debut. The fund has been able to navigate regulatory obstacles by investing 40% of its holdings in other Solana exchange-traded products, as explained by Bloomberg’s ETF analyst, Eric Balchunas.
The REX-Osprey product initially encountered regulatory challenges with the SEC, primarily concerning whether the ETF met the “investment company” criteria under federal law. The issuers have resolved this by agreeing to invest at least 40% of assets in other ETFs, mostly based outside the US. This includes ETPs that track Solana and staked Solana, which are generally classified as securities.
Strahinja Savic, the head of data and analytics at FRNT Financial, spoke to Bloomberg about this development, stating it was another step towards the integration of crypto and public markets. According to Savic, this move demonstrates how the previous administration has paved the way for crypto to become a key part of the US economy via public markets.
The introduction of this ETF follows hot on the heels of other Solana ETFs like the Volatility Shares Solana ETF (SOLZ) and its leveraged fund, SOLT. Nate Geraci, President of the ETF Store, celebrated this news, declaring it the start of the “Crypto ETF summer”.
The reaction on the market to this news was immediate, with Solana prices jumping 5.3%, from an intraday low of $150 to over $158 within minutes. However, the momentum didn’t last, and the asset slid back to $153 shortly after. Despite this, SOL has had a strong week overall, with a 7% increase since the previous week.
