Solana ETF Launches with $222 Million in Volume

The highly anticipated Solana exchange-traded fund (ETF) has finally launched, marking a pivotal moment in the development of crypto ETFs. The REX-Osprey Solana ETF went live on July 2 and, by July 16, has already reached over $222 million in trading volume, indicating strong market demand for exposure to this robust blockchain. Since its debut, the ETF has garnered net inflows of $69.7 million, with just one day of outflows, reflecting a strong investor interest despite a management fee of 0.75%. In comparison, Ethereum (ETH) and Bitcoin (BTC) ETFs attracted over $1 billion and $3 billion in inflows, securing the first two positions in the market. What sets the Solana ETF apart is its innovative staking mechanism. While traditional Bitcoin ETFs merely hold the asset, the REX-Osprey Solana ETF allows for staking of its SOL holdings to earn rewards from the network, thereby potentially increasing returns for investors. This staking approach provides additional yield, independent of price increases, as staked SOL earns rewards from validating network activities. This innovation marks a significant shift in the crypto ETF landscape, as Bitcoin ETFs cannot offer similar yield-generating strategies due to the proof-of-work consensus model. The successful launch also underscores the increasing regulatory compliance within the crypto industry. To manage the custody and on-chain staking of the fund's Solana, REX-Osprey has partnered with Anchorage Digital, the only federally chartered crypto bank in the U.S., which serves as a qualified custodian for the fund. This information is sourced from The Block's Data & Insights newsletter, which delves into the numbers behind the industry's most compelling trends. Disclaimer: The Block is an independent media outlet providing news, research, and data as of November 2023. Foresight Ventures, a major investor, also invests in various crypto companies. However, The Block operates independently to ensure objective and timely reporting on the crypto market. Ensure you read our current financial disclosures.