Breaking: First-Ever Solana Staking ETF Hits US Markets This Week
Wall Street's crypto pivot accelerates as regulators greenlight a game-changer.
The Solana ETF arms race begins
Move over, Bitcoin—institutional money now wants yield. The SEC's reluctant nod to this staking vehicle marks a seismic shift in crypto's Wall Street infiltration. No more messy validator nodes for suits who can't spell 'proof-of-history.'
Why this cuts deeper than spot BTC ETFs
Staking rewards transform crypto from speculative asset to cash-flow machine. Pension funds salivate over that sweet 5-8% APY while retail gets diluted (again). The ultimate irony? TradFi adopting DeFi's killer app before most DeFi degens even grasp it.
Solana's revenge tour continues
ETH killers aren't supposed to get SEC-approved products first. But here we are—Vitalik's nightmare wrapped in a prospectus. Network uptime? Irrelevant when BlackRock's algorithms handle the staking slashing risks.
The fine print that'll make crypto OGs shudder
Custodial wallets. KYC'd validators. 2% management fees on your 'decentralized' yield. But hey—at least the tax paperwork comes pre-filled.
One hedge fund MD's cocktail napkin math: 'We can repackage this as a CD alternative for boomers by Q3.' The innovation never stops.
Solana Staking by Proxy
The REX-Osprey product faced regulatory hurdles with the SEC, which initially objected after clearing an initial registration.
The primary issue was whether the ETF qualified as an “investment company” under federal law.
However, the issuers agreed to a compromise by investing at least 40% of assets in other ETFs, mostly domiciled outside the US.
The lineup includes ETPs, which are typically classified as securities, that track Solana and staked Solana.
“The move to allow ETFs that offer staking yield is a further step in the marriage we are seeing between public markets and the crypto economy,” Strahinja Savic, head of data and analytics at FRNT Financial, told Bloomberg.
He added that it was another example of how the TRUMP Administration is “opening the door for crypto to become an integrated part of the US economy via public markets,” rather than a “pariah asset class” that was difficult for traditional investors to access.
The launch follows other Solana ETFs like the Volatility Shares Solana ETF (SOLZ) and its Leveraged fund, SOLT, which track futures and offer leveraged exposure.
“Crypto ETF summer kicks off,” said ETF Store President Nate Geraci.
SOL Price Reaction
Solana prices jumped 5.3% in reaction to the news, climbing from an intraday low of $150 to top $158 in a matter of minutes.
However, the momentum could not be maintained, and the asset retreated to $153 in the hours that followed.
SOL has had a solid week with a 7% gain since the same time last week, as crypto markets and altcoins have shown recovery signs.
Nevertheless, SOL has tanked almost 50% from its January all-time high, which was driven by the memecoin frenzy, the primary use for the blockchain.
