The REX-Osprey Solana Staking ETF (SSK) made its debut on the Cboe BZX Exchange on June 2nd, achieving an impressive $8 million trading volume within its first 20 minutes. However, the launch failed to significantly boost SOL's price momentum, with the token dipping 7.8% in the pre-listing week.
Key Market Observations:
- SOL gained ~3.6% in 24 hours, mirroring Bitcoin's performance
- ETH outperformed with a 7.1% surge, briefly touching $2,600
- ETF closed with $33M daily volume, ranking in top 1% of new ETF launches
Why Didn't ETF Demand Translate to Spot Market Rally?
Bloomberg analyst Eric Balchunas noted SSK's exceptional trading volume ($20M by midday), though questions remain about sustained liquidity given REX's smaller AUM compared to giants like BlackRock.
ETF Structure Highlights:
- 45% allocated to 21Shares Solana Staking ETP
- Remaining funds invested directly in SOL spot
- Provides monthly cash distributions of staking rewards (no self-custody required)
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SEC's "No-Action" Approval Sets Precedent
The ETF's unique C-Corp structure under the 1940 Act (with 6C-11 exemption) bypassed traditional 19b-4 review. SEC's tacit approval marks:
- First official acceptance of staking rewards in ETF framework
- Potential policy shift ahead of 2025 elections
- Seven additional Solana ETFs pending approval
Tax Implications and Fee Structure
Investors should note:
- 0.75% management fee + 1.40% total annual expense ratio
Staking rewards may generate taxable events:
- Treated as ordinary income, capital gains, or return of capital
- Consult tax advisors for jurisdiction-specific guidance
FAQ Section
Q: How does this differ from Bitcoin/ETH ETFs?
A: It's the first to incorporate staking rewards while tracking SOL price, creating dual income streams.
Q: Can retail investors benefit from this ETF?
A: Yes, but with higher fees (1.4%) than typical crypto products. Institutional adoption is primary focus.
Q: Will more crypto staking ETFs follow?
A: Very likely - this establishes a regulatory blueprint for other PoS assets like ADA, DOT, and MATIC.