Solana Staking ETF Launches in US Offering 7.3% Rewards

The launch of the Solana Staking ETF by REX-Osprey marks a significant milestone in the U.S. crypto ETF landscape. This ETF is the first of its kind in the U.S., offering investors the opportunity to engage with Solana (SOL) and its staking rewards through a regulated investment vehicle. The ETF aims to provide a target allocation of 80% in SOL, with approximately 50% of the holdings actively participating in staking. This structure allows investors to benefit from the staking rewards, which are currently at around 7.3%, directly passed to them.

Led by Greg King, CEO of REX Shares and Osprey Funds, the ETF is designed to cater to both retail and institutional investors without the need for external financing. The launch of this ETF is expected to influence the Solana DeFi space, potentially leading to shifts in how investors interact with the Solana blockchain and related tokens such as JitoSOL. The regulatory pathway for this ETF has been smooth, with no objections from the SEC, allowing it to launch without direct affiliation to Solana Labs.

The introduction of this ETF highlights the role of financial products in the expansion of digital assets. The ETF’s structure includes unique tax designations similar to those of corporate entities, which could set a precedent for future staking-native financial tools. Historical trends in crypto ETFs suggest that investor engagement is likely to be high, as seen in past launches involving Ethereum and Bitcoin products. This ETF could pave the way for more innovative financial products in the crypto space, further integrating digital assets into traditional investment portfolios.