Anchorage Digital Appointed Custodian for First U.S. Crypto Staking ETF

Anchorage Digital has been appointed as the exclusive custodian and staking partner for the newly launched REX-Osprey Solana + Staking ETF (SSK), the first crypto staking exchange-traded fund (ETF) listed in the U.S. This ETF, which began trading on the Cboe exchange, offers investors exposure to Solana (SOL) while generating staking rewards. Unlike existing spot bitcoin and ethereum ETFs, SSK is registered under the Investment Company Act of 1940, requiring a qualified custodian to hold the underlying assets. Anchorage Digital, the only federally regulated bank authorized to both custody and stake digital assets, will fulfill this role.

Anchorage Digital, recognized for its strong regulatory framework, was selected as the custodian for the REX-Osprey Solana ETF. This marks a significant endorsement of its role in digital asset management. The ETF, sponsored by REX Financial and Osprey Funds, integrates direct staking mechanisms for investors effectively. The event directly impacts Solana (SOL), as the ETF uses on-chain staking to pass rewards to institutional and retail investors. Anchorage’s role is critical as it handles the custody of vast amounts of SOL, reinforcing its position in the digital finance landscape.

There are broader financial implications as this move establishes a regulatory precedent under the Investment Company Act of 1940 for ETFs involving crypto staking. The ETF uniquely consolidates regulatory compliance with blockchain-based earnings, indicating a shift towards more structured crypto investment products. The launch of SSK marks a significant milestone in the crypto ETF market, as it combines income-generating features with exposure to digital assets within an SEC-regulated investment vehicle. This development is part of the broader evolution of the crypto ETF market, which is exploring new ways to bring blockchain-based products to regulated exchanges. The ETF structure makes the staking process accessible to a wider range of investors through traditional brokerage accounts, eliminating the need for technical know-how and direct interaction with crypto protocols.

Anchorage’s leadership in digital asset custody may influence regulatory, financial, and technological structures within the ETF market. By melding blockchain capabilities with federally regulated banking standards, Anchorage sets a new standard for institutional crypto asset management. The bank has solidified its status as the first U.S. bank to enable Solana staking through a regulated ETF and JitoSOL. This move not only provides exposure to Solana but also distributes staking rewards to holders, enhancing the overall yield for investors. The staking operations are fully on-chain, utilizing institutional-grade custody with Anchorage Digital and trusted validators, ensuring transparency and security.

The launch of the REX-Osprey Solana + Staking ETF is a significant step forward in the crypto ecosystem, offering investors a new way to participate in the blockchain's staking mechanism. This ETF provides indirect exposure to Solana while also generating additional yield by helping to secure the network. Staking, which allows holders of certain cryptocurrencies to earn rewards by locking their tokens into the network, has traditionally required technical expertise. By packaging staking into an ETF structure, REX Shares and Osprey aim to democratize access to this process, making it available to a broader audience through traditional investment channels.

The appointment of Anchorage Digital as the custodian and staking partner for SSK underscores the growing importance of regulated financial products in the crypto space. As the market continues to evolve, the introduction of staking ETFs represents a new phase for the industry, combining the benefits of digital assets with the regulatory oversight of traditional investment vehicles. This development is expected to attract more institutional investors to the crypto market, further driving its growth and adoption.