The biggest feature of this ETF is the 'staking' function. SSK will use part of its funds for staking on Solana network validation nodes, thereby earning additional reward income. This means that even if the SOL price remains stagnant, investors can still earn passive income through staking. The approval of SSK will initiate the 'altcoin ETF summer craze', and the staking function of the spot Ethereum ETF may soon be approved.
The U.S. is about to welcome its first cryptocurrency ETF that allows investors to earn additional income through staking.
The REX-Osprey Sol + Staking ETF (SSK) has been approved by regulators and is set to officially list and trade on Wednesday, which is considered a significant breakthrough following the Trump administration's easing of digital asset regulations.
The biggest feature of this ETF is the 'staking' function. Staking can be simply understood as: you lend your Solana tokens to the blockchain network to help verify transactions, and the network pays you 'wages' in return. It's akin to putting money in a bank to earn interest.
The approval of SSK will initiate the 'altcoin ETF summer craze', with multiple cryptocurrency ETF products expected to be approved in the coming months.
The first cryptocurrency ETF that can 'earn interest'
Currently, existing Solana-related ETFs on the market include Volatility Shares' SOLZ and the leveraged product SOLT, but these are all futures products and cannot provide staking income.
As the first spot ETF for Solana, SSK will provide investors with a way to participate in cryptocurrency staking through the ETF.
Previous crypto ETFs merely held digital assets, while SSK will use part of its funds for staking on Solana network validation nodes, thereby earning additional reward income.
The term 'staking' can be understood as 'fixed deposits' in the crypto world. In the Solana network, stakers maintain network security by helping to verify transactions and receive newly issued SOL tokens as rewards in return. This means that even if the SOL price remains stagnant, investors can still earn passive income through staking.
To meet SEC regulatory requirements, the fund has adopted a unique investment structure, with at least 40% of its assets invested in other ETFs and exchange-traded products, most of which are compliant products from outside the U.S., primarily tracking Solana and related products that stake Solana. This design satisfies the regulatory requirement that 'investment companies must mainly invest in securities', while maintaining direct exposure to Solana.
The rate for SSK is 0.75%.
'Is the 'altcoin ETF summer craze' about to arrive?'
ETFs that allow for staking income are a further step in the integration of the public market with the crypto economy. This again indicates that the Trump administration is opening the door for cryptocurrencies to become a part of the U.S. economy through the public market.
There is considerable optimism about the subsequent developments. Nate Geraci, president of ETF Store, stated: 'This marks the unofficial start of the 'crypto ETF summer'. I expect this to be the first in a wave of crypto ETF launches in the coming months. It also indicates that the staking function of the spot Ethereum ETF may soon be approved.'
Bloomberg senior ETF analyst Eric Balchunas pointed out in June that several such funds are expected to be approved in July, with Solana potentially 'leading'.
Currently, several fund issuers, including Grayscale and Bitwise, have applied to the SEC to launch ETFs that track cryptocurrency portfolios, aiming to provide broad market exposure. The SEC must make a decision by July 2, and Bloomberg analysts have given a 90% approval probability.