Solana Staking ETFs Set to Launch in US Amid SEC Approval

The first exchange-traded funds (ETFs) that will both track cryptocurrency prices and provide investors with staking returns are set to begin trading in the United States. These new ETFs, to be launched by REX Shares and Osprey Funds, are on their way to approval after the U.S. Securities and Exchange Commission (SEC) completed its comments.

REX and Osprey filed with the SEC in May to establish C-corporation ETFs that would invest in Ethereum (ETH) and Solana (SOL) assets and provide additional returns by staking a portion of these assets. However, the SEC temporarily halted the process, citing some legal uncertainties regarding these applications. With the SEC having completed its final review, the funds are now reportedly clear of any obstacles.

REX Shares announced via the X platform that the Solana staking ETF is coming “very soon.” Although there is no direct statement about the Ethereum staking ETF, both funds are included in the registration documents filed with the SEC. The ETFs will be traded on the Cboe BZX exchange under the symbols ESK (ETH staking ETF) and SSK (SOL staking ETF), respectively.

This development comes amidst a particularly competitive environment, particularly on the Solana side. Major firms such as Invesco and Galaxy have also applied for spot Solana ETFs. Unlike most ETFs, the funds opt for taxable C-corporation status, which allows staking income to be taxed within the fund before being passed on to investors as dividends. While management fees for both funds are set at 0.75%, the total cost is expected to be higher due to income taxes.

The cryptocurrency landscape is on the brink of a significant transformation with the potential launch of Solana and Ethereum ETFs that include staking features. These developments could mark a turning point for the industry, as they would allow investors to gain exposure to these cryptocurrencies without the need for direct SEC approval. This move is expected to broaden the investment horizon for cryptocurrencies, making them more accessible to a wider range of investors.

REX Shares has announced the upcoming launch of the 'REX-Osprey SOL+Staking ETF,' which is set to be the first staking cryptocurrency ETF. This ETF will directly hold SOL and offer staking rewards, providing investors with a new way to participate in the Solana ecosystem. The implications of this development are monumental, as it could attract more institutional interest and inflows into crypto ETFs. Invesco and Galaxy Digital have also filed with the SEC to launch a spot Solana ETF, ticker “QSOL,” which would directly hold SOL and offer staking rewards. This move is part of a broader trend of growing institutional interest in the crypto market, with more coins like ETH seeing staking and other innovative financial products.

The excitement around the possibility of U.S. regulators approving a spot Solana ETF is building, with some analysts predicting that approval could come as early as this summer. This would be a significant milestone for the cryptocurrency industry, as it would provide a regulated and accessible way for investors to gain exposure to Solana. The approval of a spot Solana ETF could also pave the way for similar products for other cryptocurrencies, further integrating them into the mainstream financial system.

The launch of these ETFs with staking features is expected to have a positive impact on the cryptocurrency market. Staking rewards provide investors with an additional source of income, making these ETFs an attractive option for those looking to diversify their portfolios. The inclusion of staking features in these ETFs also aligns with the growing trend of decentralized finance (DeFi), which emphasizes the importance of user participation and rewards in the financial ecosystem.

In summary, the potential launch of Solana and Ethereum ETFs with staking features represents a significant development for the cryptocurrency industry. These products could attract more institutional interest and inflows into crypto ETFs, providing investors with a new way to participate in the crypto market. The approval of a spot Solana ETF could also pave the way for similar products for other cryptocurrencies, further integrating them into the mainstream financial system. The inclusion of staking features in these ETFs aligns with the growing trend of DeFi, emphasizing the importance of user participation and rewards in the financial ecosystem.