Solana SSK ETF breaks $100M as Wall Street warms to crypto staking

Explore insights within the NFT house. This article dives into: “Solana SSK ETF breaks $100M as Wall Street warms to crypto staking”.

SSK, the Solana staking exchange-traded fund (ETF) from REX-Osprey, surpassed $100 million in belongings beneath 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.

While most crypto ETFs are registered beneath the Securities Act of 1933, which doesn’t permit funds to distribute staking rewards, SSK is registered beneath the Investment Company Act of 1940. That construction permits the fund to pay out staking earnings like dividends, essential to traders looking for yield, not simply hypothesis on asset costs.

According to Rex-Opsprey founder and CEO REX-Osprey Greg King, the ETF’s development exhibits investor demand for blockchain-native funding merchandise in acquainted codecs. In a press launch, he stated SSK is “opening the door for mainstream investors to access the power of Solana staking through the familiar ETF wrapper.”

SOL traded above $200 per coin right now and is up 25.3% over the past seven days, in keeping with information from CoinGecko.

Speaking with Cointelegraph, King stated REX-Osprey goals to increase its ETF lineup to satisfy consumer demand. “We’ve also filed for similarly structured ETFs on XRP, DOGE, and ETH. And we’re looking at many more cryptos beyond those.”

He says the product “appeals to registered investment advisers (RIAs) and others who want both exposure to Solana and to receive monthly distributions in an entirely new way from the current ways of generating income.”

Related: Spot Bitcoin ETFs break 12-day influx streak amid ‘profit taking’

Institutions shift towards staking earnings

SSK’s Solana fund is a part of a broader development: Institutional traders are warming to staking-based returns as a substitute or complement to conventional fastened earnings.

With world rates of interest plateauing, Bitcoin value positive aspects slowing and regulatory readability taking form within the US, asset managers are turning to crypto yield methods to spice up returns. 

In addition to SSK, platforms providing Ethereum staking and tokenized US Treasury merchandise have seen regular inflows from institutional allocators.

While staking ETFs face regulatory hurdles, SSK’s debut may set a precedent for upcoming funds.

On June 13, Fidelity filed an S-1 registration with the US Securities and Exchange Commission (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 keeping with ETF analyst James Seyffart.

Currently, no (ETH) ETFs provide onchain staking, although that would change with clearer SEC steering and as fund issuers discover compliant buildings beneath regulatory frameworks.

Magazine: TradFi is constructing Ethereum L2s to tokenize trillions in RWAs — Inside story

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