Solana Staking ETF Sees $12 million Inflows at Launch
The first Solana staking exchange-traded fund (ETF) in the United States closed its debut day with $12 million in inflows, reflecting growing interest in crypto ETFs that offer staking rewards.
Launched on the Cboe BZX Exchange, the REX-Osprey Solana Staking ETF, trading under the ticker SSK, reported $33 million in trading volume on its first day. Bloomberg analyst Eric Balchunas highlighted the volume and inflow data, while fellow analyst James Seyffart described the opening as a “healthy start,” noting that $8 million had already been traded in the first 20 minutes.
SSK gives investors direct exposure to spot Solana and associated staking yields, making it the first ETF of its kind approved in the U.S. Balchunas added that its volume significantly outperformed Solana and XRP futures ETFs but fell short of the $4.6 billion seen by spot Bitcoin and Ether ETFs when they launched in early 2024.
Anchorage Digital, the fund’s staking and custody provider, called the launch a “defining moment for digital assets,” emphasizing its role in expanding access to the crypto ecosystem. Seyffart cautioned against drawing conclusions too early, pointing out that the ETF launched during a shortened trading week due to the July 4 holiday.
The fund’s approval came despite earlier objections from the U.S. Securities and Exchange Commission. To meet regulatory requirements, it committed to allocating at least 40% of its assets to other exchange-traded products, primarily those based outside the United States.
Unlike traditional spot ETFs that require SEC approval, the REX-Osprey ETF was structured under the Investment Company Act of 1940, allowing it to bypass the usual filing procedures. This workaround has led to some debate over whether it qualifies as a standard spot Solana ETF.
Still, the product’s launch is being closely watched for signs of institutional demand ahead of possible future approvals for fully-fledged spot Solana ETFs. Analysts Seyffart and Balchunas recently estimated a 95% chance that the SEC will approve ETFs for Solana, XRP, and Litecoin by the end of 2025.
The SEC also approved Grayscale’s request to convert its Digital Large-Cap Fund into an ETF, comprising top five cryptocurrencies by market cap.
Solana’s price saw only a modest increase of 3.6% in the last 24 hours and was trading near $153 at the time of reporting. Although the token is up around 5% on the week, it remains 48% below its January highs.
Meanwhile, Solana CME futures saw heightened interest, with open interest rising to $167 million, suggesting growing institutional attention.
Sources:
https://cointelegraph.com/news/first-solana-staking-etf-hits-12m-on-debut-trading-day
https://x.com/EricBalchunas/status/1940516260875514325
https://x.com/nathanmccauley/status/1940415895685431673
https://x.com/EricBalchunas/status/1940516260875514325
https://x.com/EricBalchunas/status/1940042328573428000