REX Shares Files for Solana Staking ETF Launching June 2

REX Shares has filed for a Solana staking exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC), indicating that the launch could occur imminently. The ETF, a collaborative effort between REX Shares and Osprey Funds, is designed to enable on-chain staking, a feature that has garnered significant anticipation within the crypto community. Greg King, CEO of REX Shares, has stated that the ETF is set to go live on June 2. This timeline aligns with previous statements made by King, who had indicated that the firm intended to launch the staking-enabled product by mid-July.

The updated prospectus filed by REX Shares with the SEC suggests that the regulatory body has given a positive response, as there have been no further comments from the agency. This lack of opposition signals that the product is effectively ready for launch. The ETF aims to stake at least 50% of the underlying asset, allowing holders to receive staking rewards as dividends. This innovative structure is established as a C-corporation, providing a unique investment opportunity for those interested in earning passive income through staking.

The launch of this Solana staking ETF comes at a time when the regulatory landscape for crypto products has shifted. Last year, spot-based Ethereum ETFs were launched without staking due to concerns about staked Ether being subjected to securities regulations. However, under the new crypto-friendly administration, the SEC's Division of Corporation Finance has clarified that staking activities do not constitute securities transactions for some proof-of-stake (PoS) blockchains. This regulatory clarification has paved the way for the introduction of staking-enabled ETFs, making them more attractive to investors seeking passive income opportunities.

The anticipation surrounding the launch of the Solana staking ETF has been reflected in the market, with Solana's price experiencing notable surges. The market's positive response to the news further underscores the growing interest in staking-enabled crypto products and the potential they hold for investors.

Industry observers suggest this could mark a turning point for regulated crypto yield products in the U.S. The ETF’s ticker will be $SSK, designed to track Solana’s market value while generating additional returns from staking operations. The ETF aims to deliver returns not only from price appreciation but also from on-chain staking yields. This would allow investors to gain passive income while holding exposure to SOL price movements.

Unlike traditional spot crypto ETFs, the new product integrates native staking rewards from the Solana blockchain. This approach may offer a blueprint for other staking-based ETFs in the future. The filing and expected approval come during a summer of rising interest in crypto-based ETFs. Institutional appetite for regulated exposure has surged following multiple spot Bitcoin ETF approvals earlier this year. With Solana gaining momentum in both price and adoption, the timing for the $SSK ETF could prove strategic.

Analysts agree this product could draw investor attention not just for crypto exposure but for the added yield element. If successful, this ETF might lead to similar offerings across other proof-of-stake blockchains. Investors and fund managers will be closely watching how this ETF performs once live. The innovative 40 Act structure may inspire a wave of staking-based crypto ETFs. This move introduces a new category of yield-generating crypto ETFs under a ’40 Act structure. If approved, the fund would be the first of its kind to combine crypto price performance with staking income.