The U.S. financial market has taken a bold step into the future of digital asset investing with the official launch of the first Solana (SOL) staking-enabled ETF. The REX-Osprey SOL+Staking ETF, trading under the ticker SSK, marks a pivotal moment in the convergence of traditional finance (TradFi) and blockchain-based yield mechanisms. This innovative product not only provides exposure to Solana’s price performance but also allows investors to earn staking rewards—ushering in a new era of compliant, passive income generation for institutional and retail participants alike.
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The Launch: Bridging Crypto and Traditional Markets
REX Shares has confirmed the launch of the REX-Osprey SOL+Staking ETF on July 2, 2025, making it the first exchange-traded fund in the United States to integrate native staking functionality for Solana. Unlike conventional crypto ETFs that only track asset prices, this product unlocks dual value: capital appreciation from SOL’s market performance and ongoing income from on-chain staking rewards.
Market sentiment responded swiftly—SOL briefly surged over 6%, nearing $160, while JTO climbed more than 8%. Although prices have since stabilized around $153, the immediate reaction underscores strong investor interest in regulated, yield-generating crypto products.
This milestone reflects a growing shift in regulatory sentiment—from cautious observation to selective approval—indicating that staking-based financial products may now be gaining legitimacy within mainstream finance.
Key Players Behind the ETF
The REX-Osprey SOL+Staking ETF is a collaborative effort between two seasoned players in the digital asset space:
- REX Shares: A pioneer in alternative strategy ETFs and ETNs, known for its leveraged and options-based products.
- Osprey Funds: Originally launched as REX’s crypto division in 2019 and spun off as an independent entity in 2021. Osprey brings deep experience in blockchain investments, having backed Bitcoin as early as 2013.
To manage compliance and structure efficiently, the fund may hold Solana assets indirectly through a Cayman Islands-based subsidiary: REX-Osprey (TM) SOL + Staking (Cayman) Portfolio SP. The parent fund fully owns and controls this entity, ensuring consolidated reporting and operational oversight.
Supporting Service Providers
A robust ecosystem of regulated financial institutions supports the fund’s operations:
- REX Advisers, LLC – Investment advisor; Matthew Pelletier serves as portfolio manager.
- Commonwealth Fund Services, Inc. – Fund administrator overseeing day-to-day operations.
- U.S. Bank – Provides financial administration and accounting services.
- U.S. Bank National Association – Acts as ETF custodian for non-crypto assets.
- Anchorage Digital Bank National Association – Licensed crypto custodian responsible for securing SOL holdings, executing staking transactions, and collecting staking rewards.
- Foreside Fund Services LLC – Distributor handling the creation and redemption of ETF shares (Creation Units).
This institutional-grade infrastructure reinforces trust and compliance—key factors for attracting long-term capital from pensions, endowments, and wealth managers.
Investment Strategy: Dual Exposure to Price and Yield
The ETF’s strategy is designed to deliver comprehensive exposure to Solana’s ecosystem through both price appreciation and active participation in network security.
Core Investment Objectives
- Track the performance of Solana (SOL) as closely as possible.
- Generate additional returns by staking a significant portion of held SOL tokens.
Asset Allocation Framework
According to SEC filings:
- At least 80% of net assets will be invested directly in Solana or instruments providing equivalent exposure.
- The fund may also invest in other crypto ETFs—including non-U.S.-listed ones—that offer similar Solana exposure.
Staking Mechanics
- A minimum of 50% of the fund’s SOL holdings will be staked.
- The investment advisor directs Anchorage Digital to delegate SOL to one or more validator nodes.
- Staking rewards are paid out in SOL and subject to applicable lock-up periods before they can be distributed or traded.
This hybrid model blends passive indexing with active yield generation—a novel approach that could redefine how investors think about crypto ETFs.
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Tax Structure: Treated as a C Corporation
Unlike most ETFs, which operate as regulated investment companies (RICs) under Subchapter M of the Internal Revenue Code, the REX-Osprey SOL+Staking ETF will be taxed as a C corporation due to its limited number of shareholders and unique structure.
Implications at the Fund Level
- Capital Gains Tax: Realized gains from asset sales are taxed at the corporate level (federal corporate tax rate).
- Excise Tax: Applies if redemptions exceed issuances by over $1 million in a taxable year (1% on excess).
- Accumulated Earnings Tax: A 20% penalty may apply if excessive profits are retained instead of distributed.
Investor-Level Taxation
Investors face taxation in two main scenarios:
1. Dividend Income
- Distributions from current or accumulated earnings are treated as dividend income.
- Eligible corporate investors may qualify for dividend-received deductions.
- Individual investors who meet holding period requirements may benefit from lower long-term capital gains rates.
2. Sale of Shares or Redemption of Creation Units
- Held over 1 year: Long-term capital gains (lower tax rate).
- Held 1 year or less: Short-term gains taxed at ordinary income rates.
This dual-layer taxation requires careful planning but offers transparency within a well-defined legal framework.
Fee Structure
Transparency in costs is critical for institutional adoption. The fund discloses the following fees:
- Advisory Fee: 0.75% annual management fee charged by REX Advisers, calculated daily and paid monthly based on average daily net assets.
- Administration & Accounting Fees: Charged by Commonwealth Fund Services and U.S. Bank; exact percentages not disclosed.
While expense ratios are still evolving, the 0.75% advisory fee aligns with premium actively managed ETFs.
Market Impact and Future Outlook
The approval of a staking-enabled ETF signals a major shift in how regulators view proof-of-stake economics. It suggests that staking—once seen as technically complex or legally ambiguous—is now being recognized as a legitimate income stream within regulated finance.
Broader Implications
- Regulatory Pathway Cleared: The SEC’s green light sets a precedent for future staking ETFs, including potential Ethereum staking ETFs.
- Increased Institutional Adoption: With compliant custody and transparent reporting, retirement funds and asset managers may now consider Solana a viable allocation.
- Ecosystem Strengthening: Higher demand for SOL and increased staking activity enhance network security and decentralization.
Notably, Commonwealth Fund Services has already filed for a REX-Osprey ETH+Staking ETF, using nearly identical language—hinting at a broader roadmap for staking-based financial products.
Frequently Asked Questions (FAQ)
Q: What makes this ETF different from other crypto ETFs?
A: Unlike standard spot or futures-based crypto ETFs, this fund actively stakes at least 50% of its Solana holdings, enabling investors to earn yield directly through their brokerage accounts.
Q: Can individual investors buy this ETF?
A: Yes. While Creation Units are only available to authorized participants (institutions), individual investors can purchase shares on national securities exchanges through brokerage accounts.
Q: How are staking rewards distributed?
A: Rewards are paid in SOL and held by the fund. They may be reinvested or distributed to shareholders as dividends, subject to tax implications.
Q: Is there counterparty risk with this ETF?
A: Yes. Risks include custody failures, validator downtime, regulatory changes, and cybersecurity threats. However, use of regulated custodians like Anchorage Digital mitigates many concerns.
Q: Will this ETF boost Solana’s price long-term?
A: Potentially. With at least 80% of assets allocated to SOL and significant portions staked, sustained buying pressure and reduced circulating supply could support upward price momentum.
Q: Could this model expand to other blockchains?
A: Absolutely. The success of this ETF paves the way for similar products on Ethereum, Cardano, and other PoS networks—especially if regulatory clarity continues to improve.
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Core Keywords
Solana staking ETF, SOL ETF, U.S. crypto ETF, institutional crypto investing, staking yield, compliant crypto products, blockchain finance, proof-of-stake ETF
This landmark launch represents more than just a new investment vehicle—it's a foundational step toward integrating decentralized finance principles into the mainstream financial system. As adoption grows, expect more sophisticated, yield-bearing crypto products to emerge, redefining what it means to "hold" digital assets in a regulated world.