In a major regulatory milestone, the SEC has signaled approval for the REX-Osprey Solana Staking ETF, effectively clearing the path for its launch this Wednesday, July 2.
Why This Is a Big Deal
- SEC’s Unofficial Green Light: The SEC’s “no further comments” response is widely seen as implicit approval, mirroring the process that preceded spot Bitcoin ETFs from BlackRock and Fidelity.
- First-of-Its-Kind Structure: Unlike traditional crypto trusts, this ETF is structured as a C-corporation under the 1940 Act, allowing it to distribute staking rewards to investors without regulatory roadblocks.
- Passive Staking for TradFi Investors: For the first time, mainstream investors can gain Solana price exposure + staking yields through a standard brokerage account—no crypto exchanges or validator setups required.
How They Cleared the Hurdle
The SEC had initially raised concerns in May over whether the fund met the 1940 Act’s "investment company" definition. But the C-corp structure—a workaround that avoids the usual 19b-4 approval process—proved to be the key. Now, with the SEC’s silence, the path is clear.
What’s Next?
- Ethereum Staking ETFs in Line: Solana’s approval sets a precedent for pending Ethereum staking ETFs, though ETH’s mechanics (like slashing) add complexity.
- Market Impact: Solana’s price has already reacted positively, and analysts see this as a major step toward institutional adoption.
- Competition Heats Up: Robinhood just launched in-app SOL staking, but this ETF offers a regulated, passive alternative for traditional investors.
Final Take
This isn’t just a win for Solana—it’s proof that staking can coexist with TradFi under the right regulatory framework. With REX-Osprey taking the first-mover advantage, could a multibillion-dollar staking ETF market be next?
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Sources: Compiled from latest regulatory filings and market reports as of 2025-07-01.