Solana Staking ETF SSK Debuts With 7.3% Reward Rate

The REX-Osprey Solana + Staking ETF (SSK) has made its debut on the Cboe exchange, marking a significant milestone in the cryptocurrency investment landscape. This ETF is the first of its kind in the United States, offering investors exposure to Solana (SOL) along with staking rewards, all within the familiar structure of an exchange-traded fund. The launch of SSK is a collaborative effort between REX Shares and Osprey Funds, two entities known for their expertise in thematic and alternative ETFs and digital asset management, respectively.

SSK provides a unique investment opportunity by offering primarily spot SOL exposure, which helps avoid the negative effects of contango that can impact futures-based ETFs. In addition to this direct exposure, the fund also delivers the benefits of SOL staking, which currently offers a reward rate of 7.3%. The fund is designed to hold the majority of its assets in directly staked SOL, 40% of its assets in exchange-traded products that themselves stake SOL, and a small amount of its assets in liquid staking tokens. Importantly, all staking rewards received by the fund are passed directly to investors, with neither REX nor Osprey retaining any portion.

Greg King, CEO of REX Financial, highlighted the significance of this launch, stating that it represents a major milestone for ETFs and the crypto industry. He emphasized that SSK bridges the gap between traditional financial securities investments and crypto investments, providing investors with Solana staking rewards in a familiar ETF format. This innovation allows investors to participate in Solana’s network economics while maintaining the convenience and transparency of an ETF.

The ETF is designed to serve both retail and institutional investors. Unlike other crypto products that rely on derivatives or just provide spot crypto exposure, SSK participates directly in native Solana staking, ensuring that rewards are sourced from the blockchain protocol itself. This direct participation in staking, along with the holding of exchange-traded products that stake SOL, allows investors to take part in Solana’s network economics while enjoying the benefits of an ETF.

REX-Osprey, the joint initiative behind SSK, is focused on developing products that combine the integrity of traditional financial structures with the transformative potential of blockchain technology. The launch of SSK is a testament to their commitment to innovation and their ability to deliver cutting-edge investment solutions to the market.

The ETF's launch was met with strong early interest, with $33 million in trading volume on its first day. This initial success underscores the growing demand for crypto investment products that offer both exposure to digital assets and the potential for additional returns through staking. The ETF's structure, which includes direct staking and the holding of exchange-traded products that stake SOL, provides a unique value proposition for investors looking to gain exposure to the Solana network.

However, it is important to note that investing in the Fund is not a direct investment in Solana and involves significant risks, including the possible loss of principal. The Fund's prospectus and summary prospectus contain detailed information about the risks, charges, and expenses associated with investing in SSK. Potential investors are advised to carefully consider this information before making an investment decision.

In summary, the launch of the REX-Osprey Solana + Staking ETF (SSK) represents a groundbreaking development in the crypto investment landscape. By offering exposure to Solana (SOL) along with staking rewards, SSK provides investors with a unique and convenient way to participate in the Solana network. The ETF's structure, which includes direct staking and the holding of exchange-traded products that stake SOL, sets it apart from other crypto investment products and positions it as a valuable addition to the ETF market.