This week marked a historic milestone as REX Shares officially confirmed the launch of the REX-Osprey SOL+Staking ETF on Wednesday (July 2). As the first Solana staking-focused ETF in the U.S., this product bridges cryptocurrency and traditional finance by introducing staking rewards into the ETF investment framework. Investors now gain dual exposure: price appreciation and staking yields.
Following the announcement, SOL briefly surged over 6% to nearly $160 before settling around $153. JTO also saw an 8% spike, nearing $2.50. While these gains retracted, the market’s enthusiasm underscores the product’s significance.
Key Players Behind the ETF
The REX-Osprey SOL+Staking ETF (ticker: SSK) is a collaboration between:
- REX Shares: Known for innovative ETFs/ETNs like MicroSector and T-REX, offering leveraged and inverse tools.
- Osprey Funds: A crypto-focused spinoff of REX Shares (established 2021) with early Bitcoin investments since 2013.
Service Providers:
- Investment Advisor: REX Advisers, LLC (led by Matthew Pelletier).
- Fund Administrator: Commonwealth Fund Services, Inc.
- Financial Services: U.S. Bank (accounting and custody for non-Solana assets).
- Crypto Custodian: Anchorage Digital Bank (secures SOL holdings and staking rewards).
- Distribution: Foreside Fund Services LLC.
Investment Strategy Breakdown
- Primary Objective: Track Solana’s price performance while generating staking income.
Asset Allocation:
- ≥80% in Solana or Solana-linked assets.
- Potential investments in other crypto ETFs.
Staking Approach:
- Stake ≥50% of SOL holdings via validators.
- Rewards paid in SOL (subject to lock-up periods).
- Trading: Creation Units (25,000+ shares) for institutional investors; individual shares via broker-dealers.
👉 Explore how staking boosts portfolio yields
Tax Implications: C-Corp Structure
Unlike most ETFs, this fund is taxed as a C corporation:
Fund-Level Taxes:
- Capital gains taxed at corporate rates.
- 1% excise tax if redemptions exceed $1M annually.
- Potential 20% penalty on retained earnings.
Investor-Level Taxes:
- Dividends taxed as ordinary income.
- Long-term capital gains (if held >1 year) at lower rates.
Fee Structure
- Management Fee: 0.75% annually (charged by REX Advisers).
- Other fees (e.g., custody, administration) apply but are unspecified in filings.
Market Impact and Future Implications
- Regulatory Acceptance: SEC’s approval signals growing comfort with crypto staking, paving the way for similar products (e.g., Ethereum staking ETFs).
- Institutional Confidence: Attracts pensions and mutual funds seeking compliant crypto exposure.
Solana Ecosystem Benefits:
- Increased SOL demand (80% minimum allocation).
- Higher staking rates enhance network security and decentralization.
- Risks: Volatility, regulatory uncertainty, and staking lock-ups are noted in filings.
👉 Why Solana’s ETF is a game-changer
FAQ Section
Q: How does staking work in this ETF?
A: The fund delegates SOL to validators, earning rewards paid in SOL (subject to lock-ups).
Q: What’s the tax impact for investors?
A: Dividends are taxed as income; long-term capital gains apply if shares are held >1 year.
Q: Can retail investors buy this ETF?
A: Yes, but only through broker-dealers (institutional investors trade Creation Units).
Q: Will this ETF increase Solana’s price?
A: Potential buy pressure from the fund’s 80% SOL allocation could boost prices.
Q: Are other staking ETFs coming?
A: Likely—REX-Osprey has also filed for an Ethereum staking ETF with a similar strategy.
This launch not only validates Solana’s institutional appeal but also sets a precedent for crypto’s integration into mainstream finance. As staking mechanisms gain TradFi acceptance, expect more funds to follow this blueprint.