Solana’s Capital Influx: A Closer Look at the First U.S. Spot Staking ETF
Solana (SOL) is witnessing a significant boost in investor interest, primarily fueled by the introduction of the first U.S.-based spot staking Exchange-Traded Fund (ETF) dedicated to this digital asset.
Current Market Performance of Solana
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As of the latest update, Solana’s market capitalization has impressively climbed to $81.58 billion. This marks a noteworthy increase from the previous day’s $77.63 billion, reflecting a growth of $3.95 billion.
Accompanying this surge in market cap, the price of Solana has been on an upward trajectory. Currently, it is trading at $152.71, representing a daily gain of over 3% and a weekly rise of approximately 7%.
The Catalyst: REX Osprey Solana Staking ETF
The bullish trend in Solana’s market dynamics was significantly influenced by the debut of the REX Osprey Solana Staking ETF. This groundbreaking fund was launched on July 2 on the Chicago Board Options Exchange (CBOE), marking a pivotal moment as the United States’ first ETF focused specifically on Solana.
According to insights from Bloomberg ETF analyst James Seyffart, the fund made a strong entry with an initial trading volume of around $8 million within just 20 minutes of its launch.
Understanding the Structure of the Solana Staking ETF
The ETF, a joint venture by REX Shares and Osprey Funds, provides direct exposure to Solana while integrating staking rewards. Approximately 80% of the fund’s assets are allocated to spot SOL holdings, with more than half of these holdings actively staked to earn on-chain yield. Investors can anticipate annual returns ranging between 7% and 7.3% from this staking component.
The ETF’s portfolio also diversifies into Solana-linked international offerings and liquid staking products, including JitoSOL. A crucial element in the ETF’s approval was its strategic legal framework. By structuring the fund as a C-corporation under the Investment Company Act of 1940, REX and Osprey successfully navigated regulatory challenges that have hindered other crypto-related ETFs.
Future Prospects for Solana ETFs
Meanwhile, the U.S. Securities and Exchange Commission (SEC) is currently evaluating additional Solana ETF proposals from prominent financial entities such as VanEck, Franklin Templeton, Fidelity, Galaxy Digital, and Grayscale. Although none have received approval yet, the SEC has extended its review periods into late July. Market analysts are projecting a 95% probability that at least one Solana ETF will secure regulatory approval before the conclusion of 2025.
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