Solana Staking ETF SSK Debuts With $33 Million Trading Volume

The first spot Solana staking ETF, launched by REX Shares and Osprey Funds, began trading under the ticker SSK. The ETF achieved a significant $33 million in trading volume on its first day, marking a pivotal moment for crypto investments in the US. This ETF is notable for offering staking rewards, which are expected to influence Solana's market value and trading activity.

The ETF saw strong initial demand, with $8 million in early trading. REX Shares emphasized their commitment to providing staking rewards through the ETF, attracting both institutional and retail investors. The ETF's structure focuses on staking Solana to deliver attractive annual yields, setting it apart from other crypto ETFs that do not offer staking rewards.

The positive market response to the ETF launch was evident in Solana's market capitalization growth and increased price. This enthusiasm is anticipated to encourage other staking ETF proposals awaiting SEC approval. Analysts attribute the ETF's early success to enhanced institutional interest and the innovative model of delivering direct staking rewards through a regulated investment product.

The REX-Osprey SOL + Staking ETF, trading under the ticker SSK, debuted on the Cboe exchange. The fund, which holds Solana as its primary asset, began trading with an impressive $8 million in volume within the first 20 minutes of its launch. This robust trading activity placed the ETF among the top 1% of new launches by trading volume, indicating strong investor interest and demand.

The ETF is unique as it not only provides direct exposure to Solana but also offers staking rewards to investors. Anchorage Digital, a federally chartered digital asset bank, has been appointed as the exclusive custodian and staking provider for the fund. This arrangement ensures that the ETF operates under the stricter regulations of the Investment Company Act of 1940, which mandates higher standards for investor protection, including mandatory asset custody by a qualified institution.

Unlike traditional crypto ETFs that operate under the 1933 Act, the REX-Osprey SOL + Staking ETF is designed to generate yield through staking while providing exposure to Solana's price movements. This dual functionality is made possible by Anchorage Digital's ability to both hold and stake digital assets, a capability that is currently unique to the federally regulated bank. The ETF's management fee is set at 0.75%, excluding tax implications, and it aims to provide a compliant structure for asset managers looking to tap into staking yields.

The launch of the REX-Osprey SOL + Staking ETF represents a significant step forward in the evolution of crypto investment products. By combining yield generation with regulatory compliance, the ETF offers a new breed of crypto ETF that caters to institutional investors seeking more than just price exposure. The ETF's debut on the Cboe exchange was met with enthusiasm from investors, with the fund's trading volume reaching $20 million on its inaugural trading day. This strong performance underscores the growing interest in crypto ETFs and the potential for staking rewards to attract investors. The REX-Osprey SOL + Staking ETF is part of a broader trend in the crypto market, where investors are increasingly seeking products that offer both exposure to digital assets and the potential for yield generation.