Solana News Today: SSK ETF's Tax Shift: A Strategic Move to Outpace Emerging Crypto Rivals

Generated by AI AgentCoin World
Wednesday, Sep 3, 2025 8:02 pm ET2min read
SOL
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Aime RobotAime Summary

- REX-Osprey converted its SSK ETF to a RIC structure on Sept. 1, 2025, eliminating fund-level taxes and aligning with standard ETF tax frameworks.

- SSK remains the sole U.S. ETF offering direct Solana spot exposure and staking rewards, mitigating contango risks through its unique token and staking product holdings.

- The fund surged to $212M AUM in 50 days post-launch, driven by institutional demand for regulated Solana exposure amid accelerated SEC approval trends.

- Regulatory clarity and staking provider commitments (e.g., Marinade Finance) signal industry alignment with SEC requirements, though crypto-specific risks like volatility and liquidity persist.

REX-Osprey has made structural changes to its

Solana
ETF to improve tax efficiency for investors, transitioning the REX-Osprey™ SOL + Staking ETF (SSK) from a C corporation to a Regulated Investment Company (RIC) structure. The change took effect on Sept. 1, 2025, and eliminates federal and state taxes at the fund level, provided the fund meets the requirements outlined in the Internal Revenue Code. This shift means that taxable income and capital gains are now directly distributed to shareholders, avoiding double taxation and aligning the fund with standard ETF tax structures. Prior to this change, the fund was subject to daily tax obligations on gains and income, which will continue to be paid for the period it operated under the C corporation structure [1].

The SSK ETF remains the only U.S.-listed ETF offering direct exposure to Solana's spot price and staking rewards. It holds a significant portion of its assets in SOL tokens and also invests in non-U.S. exchange-traded products that hold SOL and provide staking benefits. This structure helps mitigate the negative impacts of contango and delivers the advantages of staking, making SSK a unique offering in the current market [1].

The transition to a RIC structure is part of broader efforts to strengthen the fund's competitive position in the rapidly evolving crypto ETF landscape. U.S. regulators are currently reviewing multiple Solana ETF applications, with numerous amendments recently filed by various issuers. By eliminating the "tax drag" from previous structures, REX-Osprey's fund is better positioned to compete when additional Solana ETFs enter the market. This change is particularly timely, as it aligns with regulatory trends and investor demand for more cost-effective and transparent crypto investment vehicles [2].

Investor demand for SSK has been strong since its launch in July 2025. The fund reached $100 million in assets under management (AUM) in just 12 trading days and had climbed to $212 million in AUM by late August. This rapid growth reflects the increasing appetite for regulated exposure to Solana, particularly among investors seeking both price performance and staking rewards. The fund’s unique structure, combined with the growing institutional interest in Solana as a strategic reserve asset, positions it well for continued inflows [2].

The move to an RIC structure also reflects broader regulatory progress for crypto ETFs in the U.S. The SEC has recently accelerated its approval process, with templates for custody, staking, and fraud prevention now streamlining the application process. Multiple asset managers, including Fidelity, Grayscale, and Franklin Templeton, have updated their Solana ETF filings, emphasizing staking, custody, and redemption terms. These updates, coupled with the naming of Marinade Finance as a staking provider for at least two years, signal a coordinated effort to meet SEC requirements and clarify operational

mechanics
for investors [3].

Despite the advantages of the new structure, the fund continues to face risks inherent to crypto asset investments. These include exposure to price volatility, regulatory uncertainty, smart contract vulnerabilities, and liquidity constraints. Additionally, staking activities introduce risks such as the locking up of assets, which can limit the fund's flexibility and expose it to potential losses during periods of market volatility [1]. Investors are advised to carefully consider these risks before investing.

Source:

[1] REX-Osprey™ Announces Conversion of SSK ETF to Regulated Investment Company (RIC) Structure (https://www.

morningstar
.com/news/business-wire/20250903141118/rex-osprey-announces-conversion-of-ssk-etf-to-regulated-investment-company-ric-structure)

[2] REX-Osprey converts Solana ETF to tax-efficient structure (https://www.cryptopolitan.com/solana-etf-revamped-for-tax-efficiency/)

[3] Major Asset Managers Update Solana ETF Filings to Add Staking and Custody Clarity (https://www.bitget.com/news/detail/12560604943668)