XRP News Today: Solana Staking ETF Sees $12 Million Inflows on Debut Day

The United States’ first Solana staking exchange-traded fund (ETF) concluded its debut trading day with $12 million in inflows, marking a positive start for crypto staking-enabled ETFs. The REX-Osprey Solana Staking ETF, trading under the ticker SSK, began trading on the Cboe BZX Exchange on Wednesday. The ETF provides investors with direct exposure to spot Solana (SOL) along with staking yields, making it the first crypto staking ETF approved in the United States.

According to ETF analyst James Seyffart, the ETF saw $8 million in trading volume within the first 20 minutes of trading, indicating a "healthy start." Eric Balchunas, another ETF analyst, noted that the first-day volumes were impressive, surpassing those of Solana futures ETFs and XRP futures ETFs. However, the volumes were lower compared to the spot Bitcoin (BTC) and Ether (ETH) funds when they launched.

The launch of the REX-Osprey Solana Staking ETF faced regulatory hurdles with the Securities and Exchange Commission, which initially objected to the product in late May. The issue revolved around whether the product qualified as an “investment company” under securities laws. The firm managed to navigate this by investing at least 40% of its assets in other ETPs, mostly domiciled outside the US.

Unlike spot Solana ETFs, which still require approval from the SEC, the REX-Osprey Solana Staking ETF is structured under the Investment Company Act 1940. This structure sidesteps the standard 19b-4 filing process, allowing for a more streamlined approval. The ETF’s performance could provide insights into institutional demand for a spot Solana ETF, which may launch later this year. Analysts have pegged a 95% chance that spot Solana ETFs would be approved by the end of the year, with predictions of a wave of new ETFs in the second half of 2025, including spot XRP, Solana, and Litecoin (LTC) products.

The recent performance of the REX-Osprey Solana Staking ETF could signal growing institutional interest in Solana. However, there was no major reaction in Solana prices, which have gained 3.6% over the past 24 hours, lower than most of the other high-cap altcoins. The asset was trading around $153 at the time of writing and was up around 5% over the past week, but still down 48% from its January peak.

The success of the REX-Osprey Solana Staking ETF underscores the increasing acceptance of cryptocurrencies in traditional financial markets. As more investors seek exposure to the burgeoning sector, the launch of this ETF sets a positive precedent for future launches in the space. The ETF's strong debut indicates that investors are eager to explore new ways to engage with the cryptocurrency market, and it highlights the potential for other staking ETFs to gain traction. The growing interest in digital assets and the potential for staking ETFs to become a significant part of the investment landscape are evident from the ETF's performance on its first trading day.