Solana News Today: "SSK ETF Becomes Tax-Efficient Gateway to Solana’s Staking Rewards"

REX-Osprey SOL Physical ETF has drawn significant investor interest since its listing, accumulating $195.1 million in cumulative net inflows. The ETF, which is the only U.S.-listed product offering exposure to spot Solana (SOL) and staking rewards, has gained traction as a tax-efficient and innovative investment option. The fund's transition from a C-Corporation to a Regulated Investment Company (RIC) structure on September 1, 2025, marks a key development, enhancing its appeal to investors by eliminating double taxation and aligning with the standard structure used by most ETFs [1].

The REX-Osprey SOL + Staking ETF (Ticker: SSK) has differentiated itself by holding a majority of its assets directly in SOL and investing in non-U.S. exchange-traded products that also hold SOL and generate staking rewards. This approach not only avoids the negative impacts of contango, a common issue with futures-based products, but also ensures the fund benefits from staking rewards without the associated illiquidity of holding the tokens for staking periods [1].

According to REX-Osprey, the conversion to a RIC structure is expected to improve the fund's long-term tax efficiency and performance for investors. By distributing substantially all of its taxable income and capital gains to shareholders, the fund will no longer incur federal or state-level taxes as long as it continues to meet the Internal Revenue Code requirements. This strategic move aligns the fund with the broader ETF industry structure, potentially broadening its appeal to a wider range of investors seeking exposure to the Solana blockchain and its staking ecosystem [1].

The fund continues to serve as a pioneering product in the U.S. ETF market, offering investors access to one of the fastest-growing blockchain platforms while maintaining a traditional investment vehicle. The collaboration between REX Financial and Osprey Funds has enabled the creation of a product that bridges traditional finance with emerging technologies. This joint initiative combines REX’s expertise in thematic and alternative ETFs with Osprey’s digital asset infrastructure capabilities [1].

Investors should note, however, that the fund's exposure to Solana carries significant risks, including extreme volatility, regulatory uncertainty, and the potential for fraud or operational disruptions in the crypto ecosystem. The RIC structure does not eliminate these inherent risks but does improve the fund's tax treatment. The fund's performance is directly linked to the price of SOL, which is influenced by factors such as adoption rates, network activity, and technological developments within the Solana ecosystem [1].

For investors considering the REX-Osprey SOL + Staking ETF, it is important to carefully review the fund's prospectus, which details the investment objective, risks, and expenses. The fund is not affiliated with Solana or any entities providing staking or validation services, and as such, it does not offer direct ownership of the underlying blockchain infrastructure [1].

Source: [1] REX-Osprey™ Announces Conversion of SSK ETF to Regulated Investment Company (RIC) Structure (https://www.rexshares.com/rex-osprey-announces-conversion-of-ssk-etf-to-regulated-investment-company-ric-structure/)