REX Shares Launches First Staked Crypto ETF in US Tracking Solana

REX Shares, in collaboration with Osprey Funds, has introduced the first staked crypto ETF in the U.S., the REX-Osprey SOL + Staking ETF. This innovative financial product is designed to track the performance of Solana while generating yield through on-chain staking. The ETF will hold Solana, through a Cayman Islands subsidiary, with plans to stake at least half of its holdings to produce yield.

The launch of the REX-Osprey Solana + Staking ETF marks a significant milestone in the crypto investment landscape. Unlike traditional spot ETFs, this fund is registered under the Investment Company Act and taxed as a C-corporation. This structure allows it to offer direct exposure to Solana and track its spot price while providing staking rewards to its holders.

The regulatory approval for this ETF came after the SEC indicated it had no additional comments on the fund, clearing the way for its launch. Rex Shares and Osprey Funds initially proposed the Solana ETF in May, alongside a similar Ethereum ETF that would also offer staking rewards. The timing of the launch is strategic, as the market anticipates a wave of spot Solana ETFs expected to register under the Securities Act. At least nine such filings are currently under review, with seven recently amending their S-1 forms to clarify staking-related language.

Staking involves pledging tokens to a decentralized blockchain network to earn yield or financial rewards. This practice has previously drawn scrutiny from regulators over potential financial and security risks. The SEC is actively reviewing roughly 80 other fund applications that seek to track the performance of major altcoins or offer alternative digital asset exposures. These proposals build on the success of spot Bitcoin ETFs and the strong performance of spot Ethereum ETFs.

The launch of the REX-Osprey Solana + Staking ETF is a pioneering move in the crypto investment space, offering investors a new way to gain exposure to Solana while earning staking rewards. This development paves the way for a new era of compliant digital asset investing, unlocking yield potential and providing a regulated avenue for investors to participate in the crypto market.