REX Shares to Launch First US Staked Solana ETF Amid SEC Silence

REX Shares is on the verge of launching the first US staked Solana ETF, marking a significant advancement in crypto investment products. This development follows the SEC’s silent response to REX Shares’ proposal, which has been interpreted as a tacit approval. The innovative fund is designed to track Solana’s price performance while generating additional yield through on-chain staking, a feature that sets it apart from traditional crypto ETFs.

The SEC’s lack of comments on REX Shares’ proposal has been seen as a positive sign, suggesting that the regulatory body may be close to granting formal approval. This ETF is not only aimed at tracking Solana’s market performance but also at generating additional yield by leveraging on-chain staking rewards. This approach could set a new standard for crypto ETFs, providing investors with both capital appreciation and passive income streams.

Industry experts have highlighted the significance of this development. Nate Geraci, president of ETF Store, remarked that the SEC’s apparent resolution of comments signals the start of a new phase for crypto ETFs. He stated that this could ignite broader adoption of staking-based ETFs across the market, potentially leading to a surge in staking-focused ETF applications.

The SEC’s recent regulatory guidance has been instrumental in shaping this landscape. By clarifying that staking models alone do not inherently constitute securities, and that additional features such as bundled services or early redemption options do not necessarily change this classification, the SEC has provided a clearer framework for asset managers. This clarity has encouraged several firms to revisit and refine their ETF proposals, focusing increasingly on income-generating digital assets.

Should REX Shares successfully launch its staked Solana ETF, it will gain a first-mover advantage over competitors still developing spot Solana ETFs or other staking products. This leadership position could translate into significant market share and influence as investor demand for yield-bearing crypto assets grows. The success of this ETF may prompt other issuers to accelerate their staking-based ETF strategies, fostering innovation and competition within the space.

In conclusion, REX Shares’ near-launch of the first US staked Solana ETF marks a significant milestone in the evolution of crypto investment products. The SEC’s non-objection reflects increasing regulatory acceptance of staking mechanisms within ETFs, potentially ushering in a new era of yield-generating crypto funds. This development not only offers investors novel opportunities to earn passive income but also sets a precedent that could catalyze further innovation in the crypto ETF market. As the industry awaits formal approval, the momentum behind staking-based ETFs is poised to accelerate, signaling a transformative shift in how digital assets are integrated into traditional financial portfolios.