REX-Osprey will launch a cryptocurrency Solana (SOL) ETF with staking features in the United States on July 2, marking the first product with staking in this field, but experts warn to adjust expectations.
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The REX-Osprey Solana ETF with staking is the first product in the United States, expected to launch on July 2, stimulating the SOL price to increase by 5%.
The fund fees and the 40% investment structure through ETNs reduce the actual staking profits, not distributing SOL rewards but accumulating them into NAV.
The market and investors maintain a neutral sentiment as the current price is expected to fluctuate in the range of 140-190 USD, difficult to exceed 200 USD in the short term.
What is the REX-Osprey Solana ETF and why should expectations be managed?
Analysis from Eric Balchunas – Bloomberg analyst, shows that the Solana staking ETF is registered under the Investment Company Act of 1940, with 40% of assets invested through ETNs to ensure regulatory compliance.
This structure leads to increased management costs from 0.75% to 1.23% after taxes, reducing profit attractiveness. Balchunas emphasizes that investors often prefer 33 Act products with a 100% underlying asset ownership ratio.
"This is a notable step, but expectations need to be managed... Investors tend to favor 33 Act funds with 100% underlying assets if given a choice, although the launch date has not yet been determined."
Eric Balchunas, Senior Analyst at Bloomberg, 1/7/2025
This indicates that while the first staking ETF in the United States attracts interest, its operational effectiveness still has many limitations to consider.
What are the differences in SOL staking rewards in the ETF?
Solana provides staking rewards of about 6-8% per year, with the fund intending to stake about 40% of its assets. However, management costs and actual performance lead to a net yield of only 4-6%.
The significant difference is that rewards are not paid in SOL but reinvested into the ETF's net asset value (NAV), reducing attractiveness to investors who want to receive tokens directly.
"The actual yield may drop to 1.12% compared to 7% when staking directly, making this fund less attractive to raise capital, causing SOL to become less appealing."
Twitter user CRYPTOMERC4, 1/7/2025
This clearly shows the fundamental difference between investing through an ETF and direct staking, while also influencing the participation decisions of traditional SOL holders.
Market sentiment and the potential price increase of SOL after the ETF launch
Data from Santiment and the weighted Sentiment model shows that the overall sentiment towards SOL remains neutral, only slightly increasing after the announcement of the staking ETF.
The options market also shows expected price levels for SOL in the short term fluctuating between 140 – 190 USD. Notably, buying order volumes at 160 USD and 190 USD exceed selling orders at 140 USD and 120 USD, creating clear support and resistance zones.
Source: Laevitas
Although initial excitement pushed SOL back to 160 USD, analysts believe the short-term likelihood of surpassing 200 USD is low based on trading volume and the positions of options traders.
Summary of the impact of Solana staking ETF on the cryptocurrency market
The launch of REX-Osprey's SOL staking ETF marks a breakthrough in combining traditional finance with cryptocurrency and staking. However, high costs, complex structures, and lower-than-expected yields may reduce the product's appeal.
The market responded to this event quite balanced, reflected in stable prices and the neutral sentiment of both professional investors and retail investors.
Frequently Asked Questions
What is special about the REX-Osprey Solana ETF?
This is the first ETF in the United States that integrates Solana staking, allowing investors to benefit from staking without directly managing a wallet.What is the staking yield in the ETF?
About 4-6% after fees, much lower than the 6-8% from direct staking due to management fees and taxes.Are staking rewards paid in SOL?
No, the profits are reinvested into the ETF's net asset value (NAV), not paid directly in SOL tokens.How much can the price of SOL increase after the ETF?
According to the options market, the expected price will fluctuate between 140-190 USD, difficult to exceed 200 USD in the short term.Is this ETF suitable for long-term investors?
With low yields and high costs, long-term investors should carefully consider this option instead of direct staking.
Source: https://tintucbitcoin.com/gia-sol-tang-staking-len-200-usd/
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