The U.S., for the first time, saw the introduction of Solana in an ETF format with the First Spot Solana Staking ETF. REX-Osprey introduced the Solana Staking ETF (SSK) to the Cboe BZX Exchange on July 2 to bear direct SOL exposure. It also offers real-time staking rewards. At launch, it traded at a volume of $33 million and at close had $1 million in assets under management.
Bloomberg ETF analyst Eric Balchunas reports that the fund’s growth is at a stage where AUM hit $10 million very soon. That level of early interest indicates a rising trend for regulated crypto products. These products are beyond the scope of price speculation and highlight the appeal of Solana staking as a first spot initiative.
SSK is a platform that issues monthly returns from staking. At present, this is 7.3% yearly, which in turn is a big factor for institutions and retail users. They are putting their money into this fluctuating asset class because of this.
First Spot Solana Staking ETF Brings Layered Yield Play
SSK sets apart from other Bitcoin and Ethereum spot ETFs because it doesn’t only hold Solana. It stakes the majority of it on the chain. The fund which does:
- Majority to directly staked SOL
- Up to 40% in other Solana staking ETPs
- A small amount in liquid staking tokens like JitoSOL
Staking is done by Anchorage Digital, which is a federally chartered crypto bank. To issue staking rewards in a compliant way, the fund uses a C-corporate structure. This means the fund reports tax on staking income, which in turn passes to shareholders. Thus, First Spot Solana Staking strategy includes compliance and financial growth.
Critically, SSK is subject to the 1940 Investment Company Act. This also does not apply to the more relaxed 1933 Act framework, which most crypto ETFs are a part of. This also means that SSK has better investor protection, board oversight, and mandatory qualified custody. In turn, this played a role in the SEC’s approval of SSK’s application. Other crypto funds were delayed or rejected.
Solana’s ETF Debut Could Reshape Crypto Access
SSK’s entry into the market, as Eric Balchunas reports on the ETF launch, occurred the same time the SEC put the brakes on Grayscale’s larger scale crypto ETFs. This in turn shows the agency’s preference for products which have strong protective measures in place.
At its $33 million launch, the product also marks Solana’s increase in institutional credibility. This in turn indicates that the market is ready. If this ETF is proven to be stable and transparent, it may become the model for stake ETFs. These ETFs will target other proof of stake networks. In that case, Solana has become the pioneer, truly adopting the first spot model.
“Staking is the next chapter in the crypto ETF story,” said Anchorage CEO Nathan McCauley, emphasizing the impact of Solana Staking as a first spot initiative.
