US Launches First Staked Crypto ETF With Solana Staking

The first-ever US staked crypto ETF is set to launch on Wednesday, marking a significant milestone in the crypto investment landscape. The REX-Osprey Solana Staking ETF, trading under the ticker SSK, will provide investors with direct exposure to Solana (SOL) and the opportunity to earn staking rewards. This ETF is a collaborative effort between REX Shares and Osprey Funds, and its launch has been confirmed by a spokesperson for Osprey Funds.

The ETF will track the price movement of Solana and offer on-chain staking rewards, a feature that sets it apart from most current crypto ETFs. Staking involves locking tokens on the blockchain to validate transactions, a process that generates revenue which is then passed on to investors. This launch is significant as it marks the first staking-enabled crypto ETF in the US. The fund uses a 40 Act structure, which differs from other applications filed under the 30 Act. This legal approach could provide an advantage in regulatory approval.

Solana, known for its high-speed and low-cost blockchain, has gained traction among both retail and institutional investors. The inclusion of staking in the ETF enhances its appeal by providing a passive income stream, similar to dividends for stocks. If approved for listing this week, the REX-Osprey Solana ETF could open the door for similar products in the future, especially as interest in yield-generating crypto products continues to grow.

The launch of this ETF represents a significant development in the crypto investment landscape. By offering staking rewards, the ETF provides a unique opportunity for passive income in addition to price appreciation. This could attract more conservative investors who are looking for a way to enter the crypto market while still seeking some form of return similar to dividends in stocks. Staking allows token holders to lock up their assets to help secure the network and, in return, earn rewards. Including staking in an ETF could make it more attractive because it offers a way to generate extra yield.

The firm had taken a different route by using the 40 Act structure, while other issuers had filed under the 30 Act structure. This update will catch the attention of many investors who have been waiting for more regulated ways to gain exposure to Solana. Solana, known for its fast and low-cost transactions, has become one of the most popular blockchains. Its native token, SOL, has seen strong interest from both retail and institutional investors. The idea of an ETF for Solana is not new, but the addition of staking support marks a big milestone.

The possible launch of this ETF comes as interest in crypto-based investment products continues to rise. If the SOL ETF with staking support launches this week as hinted, it will be the first of its kind in the US market. It could also set the stage for other crypto ETFs to follow with similar features. The market now waits to see if this new fund will meet expectations and spark more innovation in the sector.