REX-Osprey introduces its Solana Staking ETF, the first U.S.-listed ETF to pass staking rewards to shareholders. Launched on July 2, 2024, the ETF quickly surpassed $100 million in assets under management (AUM) and achieved over $222 million in trading volume.
Partnership Details
REX and Osprey Funds, led by CEO Greg King, initiated this venture. Collaboration with Jito, the developer of JitoSOL, enables the maintenance of blockchain transparency and efficiency. Trading volumes at launch exceeded $222 million.
quote: "This partnership improves capital efficiency while maintaining transparency. Staking continues natively on the Solana blockchain, and all rewards go directly to shareholders." - Greg King, CEO, REX/Osprey Funds
Financial and Market Impact
This venture signifies a substantial shift in DeFi and institutional crypto investment, offering a new channel for capital liquidity. It establishes a precedent that could influence future ETF structures in the regulated investment environment as it grows AUM quickly. The financial implications are notable, with the ETF surpassing $100 million AUM, signaling heightened institutional interest in crypto yields.
Regulatory Considerations
Initial regulatory outcomes remain speculative as no direct guidance from entities like the SEC has been released regarding this framework. However, this could catalyze further experimentation with yield-generating crypto ETFs among financial institutions cautiously observing the results.
The integration of JitoSOL positions Solana to potentially expand its influence, bolstered by institutional-grade liquidity mechanisms that promise sustainable investment opportunities. This step impacts Solana directly and the broader DeFi landscape.
