The REX-Osprey Solana Staking ETF can be launched on July 2 underneath the ticker SSK as the primary US ETF permitting traders to earn rewards by staking Solana tokens to validate blockchain transactions.
The brand new yield-chasing crypto fund monitoring Solana has been cleared for debut, in accordance to Bloomberg, citing an individual accustomed to the matter.
Bloomberg’s ETF analyst Eric Balchunas defined that the fund has circumvented regulatory hurdles by investing 40% of its holdings in different Solana exchange-traded merchandise.
Solana Staking by Proxy
The REX-Osprey product confronted regulatory hurdles with the SEC, which initially objected after clearing an preliminary registration.
The first concern was whether or not the ETF certified as an “funding firm” underneath federal legislation.
Nevertheless, the issuers agreed to a compromise by investing at the very least 40% of belongings in different ETFs, principally domiciled exterior the US.
The lineup contains ETPs, that are sometimes categorized as securities, that observe Solana and staked Solana.
“The transfer to permit ETFs that provide staking yield is an extra step within the marriage we’re seeing between public markets and the crypto financial system,” Strahinja Savic, head of information and analytics at FRNT Monetary, advised Bloomberg.
He added that it was one other instance of how the Trump Administration is “opening the door for crypto to grow to be an built-in a part of the US financial system through public markets,” reasonably than a “pariah asset class” that was tough for conventional traders to entry.
The launch follows different Solana ETFs just like the Volatility Shares Solana ETF (SOLZ) and its leveraged fund, SOLT, which observe futures and supply leveraged publicity.
“Crypto ETF summer time kicks off,” stated ETF Retailer President Nate Geraci.
SOL Worth Response
Solana costs jumped 5.3% in response to the information, climbing from an intraday low of $150 to high $158 in a matter of minutes.
Nevertheless, the momentum couldn’t be maintained, and the asset retreated to $153 within the hours that adopted.
SOL has had a strong week with a 7% achieve because the identical time final week, as crypto markets and altcoins have proven restoration indicators.
Nonetheless, SOL has tanked nearly 50% from its January all-time excessive, which was pushed by the memecoin frenzy, the first use for the blockchain.
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