REX-Osprey Solana ETF Debuts with $33 Million Trading Volume DFDV Raises $112.5 Million for Solana Purchases

The REX-Osprey Solana + Staking ETF made a significant debut in the US market, marking a milestone for institutional investors seeking exposure to the Solana blockchain. The ETF, launched under the Investment Company Act of 1940, recorded $33 million in trading volume on its first day. This launch is notable for offering native staking rewards, a feature that sets it apart from other crypto ETFs. All Solana tokens held within the ETF are staked on-chain, with 100% of the staking yield passed directly to investors in the form of monthly distributions. This move not only provides a regulated pathway for institutional investment in Solana but also addresses regulatory concerns by adhering to stringent custodial and investor protection standards.

Anchorage Digital, the ETF’s custodian, played a crucial role in meeting these regulatory requirements. As the only federally chartered crypto bank approved to custody and stake digital assets, Anchorage Digital’s involvement was pivotal in ensuring compliance with the 1940 Act. The ETF’s launch underscores the growing institutional interest in Solana, known for its high transaction speed and low fees, as well as its burgeoning DeFi and NFT ecosystem. Despite regulatory uncertainties, the ETF’s success signals a new phase in the evolution of crypto ETFs, blending decentralized finance mechanics with traditional financial structures.

On the same day, Defi Development Corp (DFDV) announced a $112.5 million convertible note offering, upsized from an initial $100 million target. This capital raise is part of a broader strategy to support additional Solana purchases and a stock repurchase program. The notes, maturing in 2030, offer a 5.5% annual interest rate and include an equity conversion option priced at $23.11 per share, representing a roughly 10% premium over DFDV’s closing share price earlier in the week. Investors have also been granted the right to acquire an additional $25 million in notes before the round closes on July 7, further increasing the potential capital available to the company.

DFDV’s strategic shift toward crypto is evident in its pivot from a real estate technology firm to a company focused on the Solana ecosystem. The company operates validator nodes on the Solana blockchain and continues to accumulate its native token, SOL. This move mirrors a growing trend of public companies using debt and equity financing to acquire crypto assets, similar to the strategy employed by Strategy Corp with its massive Bitcoin treasury. Despite market fluctuations, DFDV shares have seen a significant increase since the company began accumulating Solana and refocusing its operations. The $112.5 million raised will be allocated toward a prepaid forward stock purchase agreement and general corporate purposes, including an expansion of its Solana holdings. This latest fundraising round follows a $5 billion equity line of credit secured with RK Capital Management, signaling strong institutional interest in DFDV’s direction and the broader shift in how crypto-aligned public firms are leveraging traditional capital markets to bet on decentralized technologies.