The cryptocurrency investment landscape may be on the verge of a major milestone as the first Solana (SOL) spot exchange-traded fund (ETF) with staking functionality could launch as early as this week. According to Bloomberg ETF analyst James Seyffart, REX Shares is poised to debut its REX-Osprey SOL + Staking ETF, marking a significant advancement in crypto-based financial products.
This potential launch follows growing momentum in the ETF space, where investor demand for regulated, accessible exposure to digital assets continues to rise. Unlike traditional spot ETFs, this new product introduces a unique feature: on-chain staking. That means investors won’t just gain price exposure to Solana—they’ll also earn staking rewards, enhancing the fund’s yield potential.
A Regulatory Workaround Paves the Way
What sets the REX-Osprey ETF apart isn’t just its staking component—it’s the regulatory strategy behind it. Instead of filing under the widely used 19b-4 registration model, REX Shares opted for a “40 Act” structure via a C corporation. This alternative route has drawn attention from industry experts who believe it could accelerate approval timelines.
The U.S. Securities and Exchange Commission (SEC) has historically been cautious about crypto ETFs, particularly those involving staking due to concerns over network participation and control. However, recent signals suggest regulators may be warming to this structure. Initial reservations appear to have eased, paving the way for what could be a landmark greenlight.
Why Staking Integration Matters
Staking has long been a cornerstone of Solana’s decentralized ecosystem, allowing token holders to participate in network validation and earn rewards. By integrating staking into an ETF, REX Shares bridges institutional finance with blockchain-native functionality.
For investors, this means:
- Exposure to SOL’s price appreciation
- Passive income through staking yields
- Regulated, custodied access without managing private keys
This dual-benefit model could attract both retail and institutional capital looking for compliant entry points into crypto markets. It also sets a precedent for future ETFs involving other proof-of-stake blockchains like Ethereum or Cardano.
Market Reaction and Investor Sentiment
In tandem with the ETF speculation, Solana’s market performance has shown strength. Over the past 24 hours, SOL price surged over 2%, surpassing $155. Trading volume spiked by 45% to $3.66 billion, reflecting heightened market interest.
Analysts are increasingly confident in broader regulatory acceptance. Recent estimates suggest there’s a 95% chance the SEC will approve spot Solana ETF applications in 2025. While that timeline refers to conventional spot ETFs, the REX-Osprey launch could serve as a de facto first mover—even ahead of larger asset managers.
Nate Geraci, president of ETF Store, noted that regulatory comfort with the product seems evident. His sentiment echoes broader market expectations: if the SEC allows this staking-enabled fund to proceed, it signals a pivotal shift in how digital assets are integrated into traditional finance.
How This Compares to Other Crypto ETFs
Bitcoin and Ethereum spot ETFs have already gained traction in the U.S., but none offer built-in staking rewards. The REX-Osprey ETF would be the first staking-enabled crypto ETF in the country, differentiating itself through yield generation.
Moreover, most existing crypto ETFs rely on indirect custody or futures contracts. In contrast, the “40 Act” structure used by REX provides a more direct ownership framework through a registered investment company—offering greater transparency and investor protection.
While other firms await SEC decisions on standard spot filings, REX’s strategic maneuver may give it a critical head start. As Eric Balchunas, senior ETF analyst at Bloomberg, observed:
“Rex just filed letter to SEC asking if comments have been resolved for their ‘40 Act Solana Staking ETF. They’re no doubt trying to get it to mkt ahead of the spot ones.”
This quote underscores not only the competitive race among issuers but also the innovative approaches being deployed to navigate complex regulations.
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Frequently Asked Questions (FAQ)
Q: What is a staking-enabled ETF?
A: A staking-enabled ETF allows investors to gain exposure to a cryptocurrency like Solana while also earning rewards from staking. The fund participates in network validation on-chain, distributing generated yields to shareholders.
Q: Is this the first Solana ETF in the U.S.?
A: Yes, the REX-Osprey SOL + Staking ETF is expected to be the first Solana-based ETF approved in the United States—and notably, the first crypto ETF with integrated staking rewards.
Q: How does the “40 Act” structure differ from traditional ETF filings?
A: Most ETFs file under SEC Rule 19b-4. The “40 Act” refers to the Investment Company Act of 1940, allowing funds structured as C corporations to bypass certain exchange-listing requirements. This can speed up time-to-market.
Q: Will investors directly hold SOL tokens?
A: No. Investors own shares in the fund, which holds SOL on their behalf. The fund manages staking operations, so users benefit from rewards without technical involvement.
Q: What are the risks of a staking-based ETF?
A: Risks include regulatory changes, slashing penalties on Solana’s network (if validators misbehave), and market volatility. However, professional custody and diversified staking strategies help mitigate these concerns.
Q: Can I withdraw my SOL from the ETF?
A: No. The ETF is a closed structure—you can trade shares on exchanges but cannot redeem them for underlying SOL tokens.
The Bigger Picture: Evolution of Crypto Asset Access
The potential launch of a staking-enabled Solana ETF reflects a maturing crypto economy. It demonstrates how innovation in financial engineering can coexist with regulatory frameworks, opening doors for mainstream adoption.
For long-term investors, such products offer a compelling mix of growth and income. For institutions, they provide auditable, compliant vehicles aligned with fiduciary standards.
As anticipation builds, all eyes are on the SEC’s next move. If approved, this ETF won’t just be another investment option—it could redefine what crypto-backed funds are capable of delivering.
Final Thoughts
With Solana’s price momentum rising and regulatory signals turning favorable, the stage is set for a breakthrough in digital asset investing. The REX-Osprey SOL + Staking ETF represents more than a product launch—it’s a step toward fully functional, yield-bearing crypto financial instruments within regulated markets.
Whether you're an investor seeking diversified exposure or a market observer tracking regulatory evolution, this development marks a pivotal moment in blockchain’s journey into traditional finance.
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