SSK, the Solana staking exchange-traded fund (ETF) from REX-Osprey, surpassed $100 million in belongings underneath administration (AUM) since its launch on July 2. The fund is the primary US-listed ETF to mix spot Solana (SOL) publicity with onchain staking rewards.
Whereas most crypto ETFs are registered underneath the Securities Act of 1933, which doesn’t enable funds to distribute staking rewards, SSK is registered underneath the Funding Firm Act of 1940. That construction permits the fund to pay out staking earnings like dividends, essential to buyers looking for yield, not simply hypothesis on asset costs.
In response to Rex-Opsprey founder and CEO REX-Osprey Greg King, the ETF’s development reveals investor demand for blockchain-native funding merchandise in acquainted codecs. In a press launch, he stated SSK is “opening the door for mainstream buyers to entry the ability of Solana staking via the acquainted ETF wrapper.”
SOL traded above $200 per coin at this time and is up 25.3% over the past seven days, in line with knowledge from Coingecko.
Talking with Cointelegraph, King stated REX-Osprey goals to broaden its ETF lineup to satisfy shopper demand. “We’ve additionally filed for equally structured ETFs on XRP, DOGE, and ETH. And we’re taking a look at many extra cryptos past these.”
He says the product “appeals to registered funding advisers (RIAs) and others who need each publicity to Solana and to obtain month-to-month distributions in a completely new approach from the present methods of producing earnings.”
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Establishments shift towards staking earnings
SSK’s Solana fund is a part of a broader pattern: Institutional buyers are warming to staking-based returns as a substitute or complement to conventional mounted earnings.
With world rates of interest plateauing, Bitcoin value positive factors slowing and regulatory readability taking form within the US, asset managers are turning to crypto yield methods to spice up returns.
Along with SSK, platforms providing Ethereum staking and tokenized US Treasury merchandise have seen regular inflows from institutional allocators.
Whereas staking ETFs face regulatory hurdles, SSK’s debut may set a precedent for upcoming funds.
On June 13, Constancy filed an S-1 registration with the US Securities and Alternate Fee (SEC) for a spot Solana ETF, becoming a member of different asset managers in line for staking-tied merchandise together with 21Shares, Franklin Templeton, Grayscale, Bitwise and Canary Capital, in line with ETF analyst James Seyffart.
At the moment, no (ETH) ETFs supply onchain staking, although that might change with clearer SEC steering and as fund issuers discover compliant constructions underneath regulatory frameworks.
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