Remarkable Start: First US Solana Staking ETF Secures $12M Inflows on Debut

Crypto investors are keenly watching the latest developments in the exchange-traded fund (ETF) space, and a new product is making waves. The first US-listed Solana staking ETF has officially launched, posting notable figures on its first day of trading.

First Crypto Staking ETF Launches Strong

The United States saw the debut of its first-ever crypto staking ETF this week. The REX-Osprey Solana Staking ETF, trading under the ticker SSK on the Cboe BZX Exchange, concluded its initial trading day with approximately $12 million in inflows.

This launch is significant as it provides investors with direct exposure to spot Solana (SOL) while also offering staking yields. Bloomberg ETF analyst Eric Balchunas noted the fund recorded $33 million in total trading volume on its debut.

James Seyffart, another Bloomberg ETF analyst, described the start as ‘healthy,’ highlighting $8 million in volume within the first 20 minutes. Balchunas added that the first-day volume surpassed that of Solana futures ETFs and XRP futures ETFs, though it was considerably lower than the initial volumes seen by spot Bitcoin (BTC) and Ether (ETH) funds earlier this year.

Nathan McCauley, co-founder of Anchorage Digital (the staking and custodian partner for the fund), called the launch a ‘defining moment’ for digital assets, representing a step towards broader access to the crypto ecosystem.

REX-Osprey ETF Navigates Regulatory Path

The journey for the REX-Osprey ETF wasn’t without regulatory challenges. The fund faced objections from the Securities and Exchange Commission (SEC) in May regarding its classification under securities laws.

The firm addressed this by structuring the fund under the Investment Company Act 1940. This approach involves investing at least 40% of assets into other exchange-traded products (ETPs), primarily domiciled outside the US, effectively sidestepping the standard 19b-4 filing process typically required for spot crypto ETFs.

Some market observers, like NovaDius Wealth Management president Nate Geraci, have characterized this as a ‘regulatory end-around.’ The structure differs from a direct spot Solana ETF, which is still awaiting potential approval from the SEC.

What This Means for a Spot SOL ETF and Altcoin ETFs

The performance of SSK is being closely watched for insights into institutional demand for Solana. This could potentially influence the likelihood and timing of a direct SOL ETF approval in the future.

Analysts Eric Balchunas and James Seyffart recently increased their probability estimate for spot Solana ETFs being approved by the end of the year to 95%. Seyffart also predicted a ‘wave of new ETFs’ in the second half of 2025, suggesting potential approvals for spot XRP and Litecoin (LTC) products before the year ends.

Adding to the positive sentiment, the SEC recently approved Grayscale’s application to convert its Digital Large-Cap Fund into an ETF, which holds a basket of top digital assets.

Market Reaction and Solana Price

Despite the successful ETF launch, the price of Solana (SOL) saw a relatively minor reaction. SOL gained about 3.6% over the 24 hours following the news, which was less than some other high-cap altcoins.

At the time of writing, SOL traded around $153, up approximately 5% over the week but still significantly down from its January peak. However, institutional interest indicators were positive elsewhere, with Solana CME futures reportedly seeing ‘record demand’ and open interest hitting $167 million post-ETF launch, according to SolanaFloor.

In conclusion, the debut of the first US Solana staking ETF represents a key milestone for the crypto market, successfully attracting significant initial inflows and demonstrating demand for yield-bearing crypto investment products within a regulated framework. While the immediate impact on SOL’s spot price was limited, the launch highlights growing institutional interest and sets a precedent that could pave the way for more crypto-related ETFs in the future, including potentially a direct spot Solana ETF.