Solana News Today: REX-Osprey Solana Staking ETF Distributes 100% Staking Rewards Hits $100M AUM in Weeks

REX-Osprey’s Solana Staking ETF has emerged as a pioneering product in the U.S. cryptocurrency market, marking the first listed fund to fully distribute Solana (SOL) staking rewards to shareholders. Launched on July 2, 2025, the REX-Osprey SOL + Staking ETF (SSK) achieved $100 million in assets under management (AUM) within weeks and recorded $222 million in trading volumes on its debut, reflecting strong investor demand for yield-generating crypto products [1][2]. The fund’s structure ensures that 100% of staking rewards are passed to shareholders monthly, with no retention by REX or Osprey, distinguishing it from traditional ETFs that often absorb a portion of returns through fees or intermediaries [3].

The integration of JitoSOL, a staked variant of Solana’s native token, enables the ETF to stake at least 50% of its underlying SOL holdings, aligning with Solana’s proof-of-stake consensus mechanism. This collaboration with Jito, a developer focused on blockchain transparency, enhances capital efficiency while maintaining network decentralization [4]. Greg King, CEO of REX/Osprey Funds, emphasized that the model directly aligns with decentralized finance (DeFi) principles, offering institutional and retail investors a novel way to monetize crypto assets in a low-interest-rate environment [5].

The ETF’s rapid growth highlights its appeal despite market volatility. For instance, Solana’s price had declined by over 16% against Ethereum in the prior month, yet the product attracted significant capital, signaling confidence in its structure. Analysts note that the fund’s success could catalyze further innovation in crypto ETFs, particularly in blending traditional finance with yield-generation strategies. The full distribution of staking rewards reduces friction for participants, addressing a key pain point in institutional adoption of blockchain-based assets [6].

Regulatory clarity remains an open question, as entities like the SEC have not yet provided specific guidance on yield-generating crypto ETFs. However, the product’s launch has sparked discussions about potential regulatory frameworks, with financial institutions closely monitoring its performance as a precedent for future offerings [7].

The market response has extended beyond Solana itself. For example, BIT Mining stock surged following the ETF’s announcement, illustrating the broader ripple effects of institutional adoption in the crypto ecosystem [8]. This interplay between crypto-native products and traditional equities underscores the growing interconnectedness of financial markets.

While the fund’s long-term success depends on Solana’s network stability—such as validator participation and block reward dynamics—its current structure is designed to mitigate risks through JitoSOL’s integration. This innovation positions the ETF as a compelling option for investors seeking both capital appreciation and active yield, potentially reshaping how traditional financial instruments interact with blockchain ecosystems.

Source:

[1] [REX-Ospreys Solana staking ETF to pass on 100% of rewards to shareholders as it integrates JitoSOL](https://www.theblock.co/post/364222/rex-ospreys-solana-staking-etf-to-pass-on-100-of-rewards-to-shareholders-as-it-integrates-jitosol)

[2] [Revolutionary Solana ETF: REX-Osprey Integrates JitoSOL](https://bitcoinworld.co.in/solana-etf-jitosol-integration/)

[3] [Research](https://www.blockscholes.com/research)

[4] [SOL to ETH: Solana Price in Ether](https://www.coingecko.com/en/coins/solana/eth)

[5] [Greg King, CFA (@GregoryDKing) / X](https://x.com/gregorydking)

[6] [MLQ.ai | Stocks](https://mlq.ai/news/)

[7] [Research](https://www.blockscholes.com/research)

[8] [MLQ.ai | Stocks](https://mlq.ai/news/)