On July 1, REX Shares—an innovative asset management firm specializing in thematic ETFs—announced the launch of the first-ever Solana staking ETF in the United States. Set to begin trading on July 3 (Eastern Time), the REX-Osprey Solana and Staking ETF marks a historic milestone as the first crypto ETF in the U.S. built on a C-Corp structure and approved by the SEC. This groundbreaking product not only provides investors with exposure to Solana (SOL) spot holdings but also enables them to earn additional yield through staking—ushering in a new era of regulated, income-generating crypto investment vehicles.
What Is the REX-Osprey Solana and Staking ETF?
The REX-Osprey Solana and Staking ETF is designed to offer U.S. investors a compliant and accessible way to gain diversified exposure to SOL, one of the most prominent Layer-1 blockchains. Unlike traditional ETFs that only track price performance, this fund actively stakes a portion of its SOL holdings on the Solana network, generating staking rewards that are then distributed back to shareholders.
This dual-benefit model—capital appreciation plus passive income—represents a significant evolution in crypto-based financial products. It combines regulatory compliance with utility, making it particularly appealing to both retail and institutional investors who seek long-term growth with added yield potential.
Strategic Partnership Between REX Shares and Osprey Funds
The development of this ETF stems from a strategic collaboration between REX Shares and Osprey Funds, a well-established player in the digital asset management space. The two firms jointly filed applications with the U.S. Securities and Exchange Commission (SEC) in May 2025, proposing two separate C-Corp-structured crypto ETFs: one focused on Solana and another on Ethereum (ETH), both incorporating staking mechanisms.
While the ETH version remains under review, the Solana-focused ETF has cleared regulatory hurdles and is now set for immediate trading upon listing. This approval signals growing regulatory confidence in staked crypto assets, provided they operate within clearly defined corporate and compliance frameworks.
Understanding the C-Corp Structure: How It Differs from Traditional ETFs
A key differentiator of this new ETF is its C-Corporation (C-Corp) structure, which sets it apart from most traditional exchange-traded funds.
How C-Corp ETFs Work
In a C-Corp structure, the ETF operates as a taxable corporation. This means:
- The fund pays corporate income tax on any profits earned (including staking rewards).
- After taxes, remaining earnings are distributed to shareholders as dividends.
- Shareholders then pay personal income tax on those dividends—resulting in what’s often called “double taxation.”
While this may seem less tax-efficient at first glance, the C-Corp model offers several advantages:
- Greater flexibility in managing complex assets like staked cryptocurrencies.
- Easier compliance with SEC reporting and governance standards.
- Ability to reinvest earnings before distribution, supporting long-term capital growth.
Contrast with Traditional Trust-Based ETFs
Most conventional ETFs are structured as pass-through entities, such as trusts or mutual funds. These do not pay corporate-level taxes; instead, gains flow directly to investors, who report them on their individual tax returns. While more tax-efficient, these structures face limitations when dealing with active strategies like staking or lending—activities that generate ongoing income streams requiring corporate oversight.
Thus, the adoption of a C-Corp framework represents a pragmatic solution for integrating on-chain yield-generating activities into regulated financial products.
Market Impact: SOL Price Surges 7% Following Announcement
The news triggered an immediate bullish reaction in the market. According to data from CoinGecko, Solana’s price jumped approximately 7%, rising from around $149.67 to nearly $160 within hours of the announcement.
As of mid-2025, Solana ranks as the 6th largest cryptocurrency globally, with a market capitalization exceeding $82 billion**. While still far from its all-time high of **$295.83 reached in January 2025, the renewed investor interest fueled by this ETF launch suggests strong momentum ahead.
This surge reflects growing market confidence in Solana’s ecosystem resilience and scalability, especially amid increasing demand for high-performance blockchain platforms capable of supporting decentralized applications (dApps), NFTs, and Web3 innovations.
Paving the Way for Altcoin ETF Mania
Analysts believe this Solana staking ETF could be just the beginning. Eric Balchunas, senior ETF analyst at Bloomberg, suggested in early June that Solana might become the first altcoin to secure ETF approval, potentially igniting a wave of similar filings across other major digital assets.
He noted that multiple crypto ETF applications—including those tied to Polkadot, Avalanche, and Chainlink—are already in various stages of SEC review. With July marking a potential approval window for several of these, market sentiment is increasingly optimistic.
This emerging trend points toward a broader shift: from Bitcoin-dominated crypto ETFs to diversified exposure across high-potential altcoins. If successful, these products could unlock billions in institutional capital and deepen liquidity across non-Bitcoin digital assets.
Why Solana Was First
Several factors contributed to Solana’s position as the frontrunner:
- Strong historical performance and developer activity.
- Proven network uptime and transaction throughput.
- Transparent tokenomics and regulatory engagement by key stakeholders.
- Growing institutional custody solutions compatible with staking compliance.
All these elements made Solana a relatively lower-risk candidate for regulatory approval compared to other altcoins.
Frequently Asked Questions (FAQ)
Q: What makes this Solana ETF different from other crypto ETFs?
A: This is the first U.S.-listed crypto ETF using a C-Corp structure and includes staking functionality, allowing investors to earn yield while holding SOL exposure—all under SEC oversight.
Q: Does this ETF hold actual SOL tokens?
A: Yes, the fund holds physical SOL tokens and stakes a portion of them on the Solana network to generate rewards, which are passed on to shareholders after fees and taxes.
Q: Is staking compliant under U.S. securities law?
A: In this case, yes. By operating under a C-Corp framework and working within SEC guidelines, the fund ensures that staking activities are transparent, reported, and taxed appropriately.
Q: Will there be an Ethereum staking ETF soon?
A: REX Shares and Osprey Funds have already filed for an ETH version. While no official timeline has been announced, many experts expect it to follow shortly after further regulatory clarity on Ethereum’s status.
Q: Are there tax implications for investors?
A: Yes. Due to the C-Corp structure, distributions may be subject to double taxation—once at the corporate level and again when received as dividends by shareholders. Investors should consult tax professionals for personalized advice.
Q: How can I invest in this ETF?
A: Once listed on July 3, the ETF will be available through major brokerage platforms that support ETF trading, including Fidelity, Charles Schwab, and others.
The Road Ahead: Institutional Adoption Meets On-Chain Utility
The launch of the REX-Osprey Solana and Staking ETF signifies a pivotal moment where traditional finance meets decentralized innovation. It demonstrates that regulated financial products can now incorporate core features of blockchain technology—like staking—without compromising compliance or investor protection.
As more asset managers explore similar models, we may soon see a new class of hybrid digital asset funds emerge—products that blend spot exposure, yield generation, and regulatory transparency.
For investors, this means greater access to diversified, income-producing digital asset strategies without needing direct custody or technical expertise. For the broader market, it signals increasing legitimacy and maturity within the crypto ecosystem.
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