SEC Nears Approval of First U.S. Solana Staking ETF

The U.S. Securities and Exchange Commission (SEC) is on the verge of approving a groundbreaking Solana staking ETF, marking a significant milestone in the cryptocurrency investment landscape. Asset manager Rex Shares has been actively pushing for the approval of its staked Solana ETF filing with the SEC. In a recent letter to the Commission, Rex Shares inquired whether the comments on its ’40 Act Solana Staking ETF have been resolved. The absence of further comments from the SEC has heightened the approval odds, suggesting that the ETF is poised for launch.

The REX-Osprey™ SOL + Staking ETF, if approved, will be the first staked crypto ETF in the U.S., offering investors direct exposure to Solana (SOL) along with on-chain staking rewards. This innovative ETF will not only track Solana’s market performance but also generate yield through Solana’s staking mechanisms, providing a dual benefit to investors. The approval of this ETF could pave the way for faster approvals of other crypto ETFs, as indicated by the positive response to Bitcoin and crypto ETFs in recent reports.

The move comes as demand grows for ETFs that generate yield. Industry leaders have long pointed out that while recent crypto ETFs provide access to digital assets, they fall short without staking. REX’s fund could be the first to change that. The ETF, structured in a rare way to bypass standard regulatory filings, may mark a breakthrough moment for crypto-based yield products in traditional finance. ETF analysts noted that REX’s approach avoids the usual 19b-4 process and instead uses a unique c-corp model that had previously drawn SEC scrutiny. The agency now appears “comfortable” with the fund’s structure, signaling that regulatory concerns have been addressed.

The optimism surrounding the approval of the Solana ETF is reflected in the market sentiment. The growing optimism has also led to increased whale activity on the Solana network. The potential approval of the Solana ETF comes at a time when the cryptocurrency market is experiencing major breakthrough developments. The end of the XRP lawsuit and the launch of Solana futures trading on platforms have opened the gates for other altcoin ETFs. The Solana price has seen an uptick, further indicating the market's positive response to the news.

The launch of the REX-Osprey™ SOL + Staking ETF, if approved, will establish Rex Shares as a pioneer in staking-based crypto ETFs. This development is expected to attract more institutional and retail investors to the Solana ecosystem, further boosting its adoption and market presence. The innovative features of the ETF, including direct SOL exposure and staking rewards, make it an attractive investment option for those looking to capitalize on the growth of the Solana network.