Solana has just made history with a first-of-its-kind launch in the United States. The debut of a spot-staking ETF focused entirely on Solana has introduced a new kind of crypto investment product to the market.
This fund not only offers exposure to the price of SOL. It allows investors to gain access to staking rewards through a regulated and familiar financial instrument.
On the surface, it may look like another ETF, but the structure, strategy and timing suggest it could mark the beginning of a much larger shift. Could this be the model that unlocks institutional access to altcoins and on-chain yield on a broader scale?
A Regulated Staking ETF That Breaks New Ground
The REX Osprey Solana Staking ETF officially began trading on the Cboe BZX exchange on 2 July. What makes this fund stand out is not only that it tracks a single altcoin.
It is also the first crypto ETF in the United States that includes staking as part of its structure. Around 80% of the fund is allocated to spot SOL holdings, with over half of that staked to generate on-chain yield.
The rest is invested in liquid staking assets linked to the Solana ecosystem, such as JitoSOL, and other international Solana-related instruments.
Investors in this ETF can benefit from expected annual returns between 7% and 7.3%, without ever needing to stake tokens themselves. This turns staking from a DeFi-native process into a passive income stream packaged inside a regulated financial product.
The legal framework is another reason why this fund is attracting attention. It was registered under the Investment Company Act of 1940, which applies stricter regulatory standards than most other crypto ETF proposals.
Instead of relying on the 19b4 rule change process, the fund was structured as a C corporation, giving it the flexibility to distribute staking rewards as dividends to shareholders.
It is a regulatory workaround that still satisfies compliance requirements while allowing for innovation.
Anchorage Digital has been chosen as the custodian for this ETF. This is significant because Anchorage remains the only federally regulated crypto bank in the United States authorised to manage both custody and staking services.
According to Anchorage CEO Nathan McCauley, the launch of this product represents a major step forward for institutional crypto access, bringing yield generation into a familiar format that traditional investors can understand and trust.
By combining legal clarity, passive staking rewards and institutional-grade custody, this ETF is not just a product launch. It is a prototype that may set the standard for future altcoin-based funds.
A Modest Launch Volume That Sends a Stronger Message
On its debut, the REX Osprey ETF recorded $33 million in trading volume. Within the first 20 minutes of trading, $8 million had already changed hands. By the end of the day, the fund had gathered $1 million in assets under management.
While these numbers may appear small compared to the early performance of Bitcoin ETFs, they are substantial in the context of altcoin products.
This was not a fund launched by the largest financial names in the industry. It did not receive the level of media coverage or marketing that accompanied previous ETF launches.
Yet, its first-day activity far outperformed earlier futures-based altcoin ETFs, such as those focused on XRP or Solana derivatives.
Bloomberg analyst Eric Balchunas noted that although the volume was below that of Bitcoin or Ether, it was still a strong result for an entirely new type of ETF.
More importantly, the volume proved that there is clear demand for altcoin exposure through regulated vehicles. It also demonstrated that staking as a feature can be brought into the ETF model without compromising regulatory standards or product stability.
This ETF launched at a time when institutional interest in digital assets is growing again. Several firms, including Grayscale, VanEck and Franklin Templeton, have submitted their own Solana ETF proposals to the Securities and Exchange Commission.
Although these applications are still under review, the success of the REX Osprey product gives the SEC a real-world example to evaluate. It may even accelerate the timeline for broader ETF approvals.
The launch also coincided with the SEC’s decision to reexamine a previous Grayscale ETF conversion, suggesting the agency is still cautious when it comes to crypto funds.
Yet the fact that this product passed approval and launched without issue shows that progress is happening, even if it is slower than the industry might hope.
For the wider crypto sector, this ETF serves as a proof of concept. It suggests that funds tied to real on-chain activity and yield can be built and accepted by regulators.
It also implies that other assets with staking potential, such as Cardano or Polkadot, may soon be considered viable candidates for similar structures.
Conclusion
The REX Osprey Solana Staking ETF is not just a win for Solana. It is a breakthrough moment for the entire crypto investment space.
By introducing staking into a fully compliant ETF structure, this product has opened the door for traditional finance to engage with decentralised yield.
Its launch volume might not have broken records, but it did send a powerful message. Institutional investors are ready to explore more than just Bitcoin and Ethereum, and this ETF shows them how it can be done. As the industry watches what comes next, one thing is clear.