Solana Staking ETF SSK Attracts $12 Million Inflows on Debut

The first Solana-based ETF with staking capabilities, the REX-Osprey Solana Staking ETF (SSK), has launched in the United States. On its first day of trading on the CBOE BZX exchange, SSK attracted $12 million in inflows. The fund offers investors direct exposure to spot Solana as well as access to staking yields. The trading debut was described as “healthy,” with $8 million in volume recorded within the first 20 minutes. SSK’s launch significantly outperformed the initial trading of Solana and XRP futures ETFs, although it was surpassed by the debut of spot Bitcoin and Ethereum funds.

The fund is structured under the Investment Company Act of 1940, which allows it to bypass the standard Form 19b-4 filing process typically required for spot ETFs. This approach is considered a “regulatory workaround.” Anchorage Digital serves as both the staking and custody partner for SSK.

The launch of SSK coincided with a surge in institutional interest in Solana. Open interest in Solana futures on the CME reached a record $167 million, signaling increased attention from institutional investors. Meanwhile, spot Bitcoin ETFs in the US have returned to positive capital inflows. Over the course of two days, investors poured more than $1 billion into these funds, offsetting a previous outflow of $342.2 million. On July 2, net inflows totaled $407.8 million, followed by $601.8 million the next day. Fidelity’s FBTC fund led the way, attracting $184 million and $237.1 million on those respective days. BlackRock’s IBIT fund also saw strong interest, raising $224.5 million on July 3 after two days of zero flows.

The debut of the SSK ETF is particularly significant as it represents the first U.S. Solana staking ETF. This innovation allows investors to participate in the Solana ecosystem without the complexities of directly managing staking operations. The ETF's structure enables investors to benefit from the potential price appreciation of SOL tokens while also earning staking rewards, which are typically distributed to those who hold and lock their tokens in a staking pool.

The $12 million in inflows on the first day indicates a strong initial interest from investors. This level of investment suggests that there is a growing demand for yield-bearing crypto funds, particularly those that offer the dual benefit of capital appreciation and staking rewards. The success of the SSK ETF could pave the way for similar products in the future, as other cryptocurrencies and blockchain platforms explore the potential of staking ETFs.

The launch of the SSK ETF also highlights the increasing institutional interest in Solana. Recently, DeFi Development Corp. acquired 17,760 SOL tokens for $2.72 million, further boosting its total holdings. This acquisition, along with the inflows into the SSK ETF, indicates that Solana is gaining traction among institutional investors who are looking for high-yield opportunities in the cryptocurrency market.

The introduction of the SSK ETF comes at a time when the cryptocurrency market is evolving rapidly. The launch of yield-bearing crypto funds, such as the SSK ETF, provides investors with new opportunities to generate returns in a market that is known for its volatility. The success of the SSK ETF could encourage other fund managers to develop similar products, further expanding the range of investment options available to cryptocurrency investors.