REX-Osprey has announced significant changes to its Solana ETF, effective September 1. These changes aim to enhance investor appeal.
Transformation of Solana ETF Structure
The SSK Solana + Staking ETF has converted from a C-Corporation structure to a Regulated Investment Company (RIC). This new structure eliminates fund-level taxes and directly distributes earnings to shareholders.
Elimination of Double Taxation
Previously, the fund operated under a C-Corp structure, which required it to pay federal and state taxes on any income, including stakeholder gains. This resulted in double taxation, significantly reducing overall returns for investors. The switch to an RIC structure removes this issue, as taxes are now borne by the investors at their individual marginal rates.
Market Outlook for Solana ETFs
With the transition to RIC, the SSK ETF is better positioned to compete in the growing market. This change comes amid increasing interest in Solana and anticipation of other Solana ETF applications from various issuers.
The reforms undertaken by REX-Osprey are aimed at strengthening the fund's position in the growing crypto ETF market and could help attract more investors.
