Solana ETF Approval Boosts Price 0.974%

Solana's latest price was $155.11, up 0.974% in the last 24 hours. The cryptocurrency market has seen significant developments recently, particularly with the approval of a Solana staking ETF by the SEC. This ETF, set to begin trading on July 2, will be the first of its kind in the US, offering investors exposure to Solana's price movements alongside native staking rewards. The ETF is structured under the Investment Company Act of 1940 using a C-corporation format, which allows staking income to flow through to investors without triggering regulatory red flags around yield, taxation, or custody. This structure was a key hurdle, as staking rewards had proven incompatible with trust-based fund models, which couldn’t easily distribute variable staking yields. The SEC’s silence on the C-corp workaround now appears to validate it as a compliant solution. This ETF dramatically lowers the barrier for traditional investors to gain passive Solana exposure plus staking yields using the same brokerage account they use for stocks or index funds. This leap in accessibility is precedent-setting and offers a roadmap for several Ethereum-staking ETFs queued behind this one.

The approval of the Solana ETF is set to significantly impact the crypto space, potentially ushering in diverse reactions in the market. The timing of this approval coincides with a rise in staking momentum, with Jito, the Solana-based liquid staking and MEV protocol, gaining traction. Meanwhile, Robinhood has launched its own in-app SOL staking, offering retail investors a direct alternative. This move marks a notable step in bringing Solana-focused investment vehicles to the U.S. market, with the fund designed to cater to institutional and retail investors seeking exposure to the asset without direct ownership. Robinhood has announced a new round of expansion for its crypto services. Based on consumer demand, the platform has offered staking for both SOL and ETH, now accessible to US customers. SOL staking returned after Robinhood delisted the asset in 2023, following a verdict on offering an unregistered security. SOL returned to the platform at the end of 2024, in time for one of its bigger bull runs. The staking option arrived just days after the app also announced SOL options trading. The staking may bring up to 7.42% in passive returns, within the usual range of 6% to 11%. The addition of staking to more mainstream products may also open the door to ETH-based products, where the ETH is locked in the Beacon Chain smart contract and participates in generating block rewards. As more SOL is consolidated in whale wallets, simple staking or liquid staking is becoming more attractive.

Simultaneously, Solana has undergone a major technological upgrade, enhancing its blockchain infrastructure to improve scalability and performance. This development comes amid heightened market speculation regarding the potential for additional ETFs tied to the cryptocurrency, contributing to renewed institutional interest and broader ecosystem activity. Market activity has intensified with the confirmation of multiple ETF initiatives. Reports indicate that a new yield-focused crypto fund tracking Solana has been cleared for debut and is scheduled for a mid-week launch. This follows rumors of staking-related ETFs entering the U.S. market, with REX shares associated with Solana staking products driving discussions about innovation in investment strategies. Overall, the focus remains on Solana's adoption and ecosystem growth, with events like the new upgrade and ETF debuts underscoring its evolving role in the broader crypto landscape. This period highlights increasing traction from institutional players, though specific mechanisms such as staking integration are contributing to ongoing developments.