Rex Osprey’s SSK Solana ETF becomes the first-ever SOL ETF to offer staking rewards to the holders, marking a significant milestone.
But how did they do it? Well, let’s understand how ETFs are registered. Most ETFs in the US are registered under the Securities Act of 1933. This act does not allow ETF issuers to pay staking rewards.
However, SSK ETF is registered under the Investment Company Act of 1940. This provision allows the issuer to pay staking rewards as dividends. This makes it a profitable investment for investors looking for better yield rather than crypto speculation.
In a press release, the CEO of Rex Osprey said,
“Opening the door for mainstream investors to access the power of Solana staking through the familiar ETF wrapper.”
He further added that the success of this ETF shows the demand for blockchain native investments.
Solana has been up by 22.38% since the last 7 days.
In an interview with Cointelegraph, King said,
REX-Osprey aims to expand its ETF lineup to meet client demand. “We’ve also filed for similarly structured ETFs on XRP, DOGE, and ETH. And we’re looking at many more cryptos beyond those.”
Speaking of the product, he further added,
“It appeals to registered investment advisers (RIAs) and others who want both exposure to Solana and to receive monthly distributions in an entirely new way from the current ways of generating income.”
Organizations Are Taking On-Chain Staking Income Seriously
Institutional investors are increasingly looking to crypto yield strategies, such as staking, to enhance returns as global interest rates stabilize and Bitcoin’s price appreciation moderates. This shift is also influenced by emerging regulatory clarity in the US. SSK’s Solana fund exemplifies this trend with their smart move to offer staking rewards as dividends.
Beyond SSK, platforms providing Ethereum staking and tokenized US Treasury products have also seen consistent inflows from institutional allocators. Besides SSK, Ether Machine is another investment vehicle that offers staking income to its investors.
On June 13, Fidelity filed an S-1 registration with the US Securities and Exchange Commission (SEC) for a spot Solana ETF. They join other asset managers like 21Shares, Franklin Templeton, Grayscale, Bitwise, and Canary Capital, who are also seeking approval for staking-tied products.
Currently, no Ethereum (ETH) ETFs offer on-chain staking. However, this could change as the SEC provides clearer guidance and fund issuers develop compliant structures within regulatory frameworks.