Solana News Today: REX-Osprey Solana Staking ETF Surpasses $100M AUM with 100% Reward Pass-Through to Shareholders

REX-Osprey’s Solana Staking ETF has emerged as a groundbreaking product in the cryptocurrency investment landscape, offering U.S. investors the first regulated fund to pass 100% of Solana (SOL) staking rewards directly to shareholders. Launched on July 2, 2025, the ETF surpassed $100 million in assets under management (AUM) and recorded $222 million in trading volumes within its initial days, signaling strong demand for yield-generating crypto products [1][2]. The fund’s structure leverages JitoSOL, a staked derivative token, to ensure blockchain transparency while enabling investors to retain exposure to Solana’s price movements without locking their own tokens [2]. This innovation addresses a key challenge in traditional crypto ETFs, which often lack mechanisms for passive income generation.

The integration of JitoSOL allows the ETF to stake a portion of its SOL holdings, supporting Solana’s network decentralization by delegating tokens to validators. Monthly staking rewards are then distributed to shareholders, creating a predictable yield stream. CEO Greg King emphasized that the partnership with Jito ensures both efficiency and transparency, stating, “Staking continues natively on the Solana blockchain, and all rewards go directly to shareholders” [2]. This model differentiates the REX-Osprey ETF from conventional index-linked crypto products, which typically do not offer native staking incentives. Analysts note that the 100% reward pass-through mechanism could enhance the fund’s appeal in a market where yield generation is a critical differentiator [3].

Market reactions to the ETF’s launch have been mixed but indicative of broader trends. For example, BIT Mining, a blockchain infrastructure provider, saw its stock price rise in response to the ETF’s announcement, reflecting cross-sector interdependencies [4]. Meanwhile, Solana’s price experienced a 5.7% decline in the 24 hours preceding the ETF’s launch, though the fund’s structure aims to insulate investors from such volatility by prioritizing yield over price exposure [5]. The ETF’s rapid AUM growth suggests growing institutional interest in crypto yields, particularly as digital asset adoption expands among regulated financial institutions.

Regulatory clarity remains a key uncertainty. While no direct guidance from the SEC has been issued regarding this staking model, the ETF’s success could catalyze further experimentation with yield-generating crypto products. The structure’s compliance with existing regulations positions it as a potential precedent for future ETFs seeking to monetize blockchain participation while adhering to compliance standards.

The REX-Osprey ETF’s approach underscores a broader shift in asset management: the tokenization of real-world assets and the development of hybrid financial products. By combining exposure to a high-performance blockchain network with passive income, the fund addresses dual investor priorities—capital appreciation and yield—within a regulated framework. This model may encourage innovation in crypto ETFs as regulatory clarity around staking and tokenized assets evolves. For now, the focus remains on demonstrating the sustainability of its yield model and delivering consistent returns in a dynamic market environment [3].

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] [REX] https://www.linkedin.com/company/rexshares

[4] [MLQ.ai | Stocks] https://mlq.ai/news/

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