The Chicago-based Cboe BZX has launched the first exchange-traded fund (ETF) based on the cryptocurrency Solana, marking a significant milestone in the cryptocurrency market.
Debut of REX-Osprey Solana ETF
The REX-Osprey Solana ETF debuted on the Cboe BZX with initial inflows of 20 million dollars and a 7.3% dividend. This fund tracks price changes in Solana while offering investors additional income through its dividend structure.
Market Response and Investor Interest
Following the ETF's launch, the price of Solana increased by 2%, reaching approximately 152 dollars. This reflects a growing interest from both institutional and retail investors in cryptocurrencies. Greg King, CEO of REX Financial, confirmed the fund's strong opening, providing exposure to Solana and staking rewards.
Shifts in Regulatory Environment
Since 2023, regulatory changes have been observed. The SEC's previous suspension of cryptocurrency ETF approvals was lifted following a court ruling regarding Grayscale's Bitcoin ETF application. This has led to a wave of approvals, including Bitcoin and Ethereum ETFs, increasing the likelihood of Solana ETF approval.
The launch of the REX-Osprey Solana ETF demonstrates the integration of cryptocurrencies into traditional financial instruments, with positive responses from investors and regulators. An increase in approved ETFs is expected to drive growing interest in this investment category.
