SEC Approves First Solana Staking ETF: A Major Milestone for Crypto Investment
2025-07-01
In a historic decision that could reshape the investment landscape for digital assets, the U.S. Securities and Exchange Commission (SEC) has officially cleared the first Solana staking ETF for launch.
The fund—jointly developed by REX Shares and Osprey Funds—is set to begin trading on Wednesday, July 2, 2025, under the name REX-Osprey Solana and Staking ETF.
This approval marks a turning point in crypto ETF innovation, enabling U.S. investors to gain exposure to Solana’s price movements and staking rewards via traditional brokerage accounts.
Unlike past crypto funds, this ETF offers real yield through a compliant structure tailored for mainstream finance.
SEC Greenlights Unique ETF Structure
The REX-Osprey Solana and Staking ETF is the first of its kind to combine spot Solana (SOL) price exposure with the ability to pass on staking rewards directly to investors. It does this using a C-corporation structure under the Investment
Company Act of 1940—a workaround that avoids the usual hurdles posed by yield, taxation, and custody issues that previously hindered staking-based ETFs.
In late May, the SEC requested a brief delay in the filing to address concerns. But on June 28, the agency issued a statement of “no further comments”—widely seen as a regulatory green light in ETF circles. Analysts compared it to the silent nod that preceded the approval of spot Bitcoin ETFs earlier in the year.
What Makes This ETF Different?
Unlike traditional crypto trusts or ETFs, this fund allows staking income to flow through to investors—an innovation long sought after by institutions and retail investors alike. Previously, anyone wanting staking rewards had to:
- Delegate tokens through crypto exchanges
- Set up complex validator nodes
- Take on custody and slashing risks
Now, investors can earn passive income from SOL staking through a regular brokerage account—without managing private keys or worrying about network-level risks.
This ETF is expected to deliver yield from Solana’s 7–9% annual staking rate, automatically distributed through the fund’s internal accounting mechanisms.
Read Also: How to Stake SOL on Solana: A Guide for Passive Income
Market Impact: Solana Takes the Lead
The ETF’s approval not only cements Solana’s role as a top-tier blockchain but also gives it a regulatory edge over other staking-capable cryptos like Ethereum and Cardano.
Ethereum, for instance, presents additional hurdles with its slashing penalties and longer unbonding periods, making similar ETF designs more complex. With Solana's comparatively faster staking system, REX and Osprey were able to get to market first.
The ETF also launches amid increased staking momentum:
- 391M+ SOL tokens are currently staked (about 65% of supply)
- Staking platforms like Jito are seeing record growth
- Robinhood recently added in-app SOL staking, signaling growing retail demand
This environment positions the ETF for success among both institutions and hands-off retail investors seeking regulated yield-bearing crypto exposure.
What This Means for the Broader Market
The Solana staking ETF sets a regulatory precedent. If successful, it will pave the way for staking ETFs tied to Ethereum, Cosmos, Avalanche, and more. Already, several Ethereum-based staking funds are awaiting SEC approval, and this launch may accelerate their timelines.
The move also demonstrates that the SEC is not fundamentally against staking, but required the right combination of structure, taxation compliance, and investor protections to move forward.
While REX and Osprey may not yet be household names, this first-mover advantage gives them a critical head start in what could become a multi-billion-dollar ETF segment.
Read Also:Solana Eyes $1,000: Institutional Boom and Kazakhstan Deal Fuel Rally
Conclusion: A Giant Leap for Solana and Staking
The SEC’s approval of the Solana staking ETF is more than just another product launch—it’s a transformational moment for how crypto integrates with traditional finance.
For the first time, investors can access the benefits of staking Solana without the technical complexity or custodial risk.
This ETF could redefine how digital yield is accessed—and with Ethereum and others likely to follow, we’re witnessing the birth of a new asset class: regulated, yield-bearing crypto ETFs. Investors, institutions, and the blockchain world will be watching closely.
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FAQ
What is the REX-Osprey Solana and Staking ETF?
It is the first U.S. exchange-traded fund offering exposure to Solana’s price and staking rewards. Investors can buy it like any stock or ETF and earn passive income through staking.
When does it launch?
The ETF is set to begin trading on Wednesday, July 2, 2025, after receiving the SEC’s final clearance.
How does staking work in this ETF?
Through its C-corporation structure, the fund will collect Solana staking rewards and pass them to shareholders in a compliant and tax-efficient manner.
Why is this significant?
It’s the first crypto ETF in the U.S. to successfully integrate staking yield, breaking new ground for regulated crypto investments.
Will more staking ETFs follow?
Yes. Ethereum and other staking-enabled tokens have pending filings. Solana’s ETF provides a roadmap for future staking ETFs.
Who should invest?
The ETF is geared toward self-directed investors and institutions who want passive SOL exposure with yield, without handling private keys or wallets.
Disclaimer: The content of this article does not constitute financial or investment advice.
