The Rex-Osprey Solana ETF, commencing trading this Wednesday, will be the first crypto ETF in the United States to include staking returns, in addition to tracking the price of SOL.
To navigate regulatory obstacles, the fund adopts a C-corporation status, allowing the distribution of staking income in the form of dividends after fund-level taxation.
Although fees are listed at 0.75%, the actual cost will be higher due to internal taxation, but this compromise could allow the ETF to be launched well before its competitors.
A Solana ETF with Staking May Arrive Soon
It’s official: this Wednesday, American investors can finally bet on an ETF Solana that not only tracks the token’s price. The ‘Rex-Osprey Solana ETF’ will also distribute returns from staking, a first in the United States.
Launched by REX Shares and Osprey Funds, this publicly traded fund promises dual exposure: to SOL’s performance, and to the revenues generated by network participation. An approach that could redefine the rules of the game for crypto ETFs.
A Bold Legal Maneuver
How did they do it? By skillfully navigating regulatory obstacles through a rarely used tax status: that of a C-corporation.
Unlike traditional ETFs, these funds are not treated as pass-through vehicles. This means that staking income will first be taxed at the fund level before being redistributed as dividends. It is less tax-efficient, but it allowed Rex-Osprey to get the green light without going through the usual channels for crypto ETF validation.
0.75% Fees… But a Higher Real Cost
On paper, management fees are set at 0.75%. In practice, they will be higher due to internal taxes borne by the structure. But for institutional investors seeking a regulated vehicle with native yield, this compromise could remain attractive.
This launch comes as the SEC is under pressure to approve a wave of cryptocurrency-related ETFs. New funds linked to Ethereum, Litecoin, Dogecoin, or even broader indices like the Grayscale Digital Large Cap Fund are currently under review.
A New Era for Crypto ETFs in the US?
Donald Trump’s victory in January reshuffled the deck. The current administration’s pro-crypto stance has clearly accelerated regulatory momentum.
So far, the United States has been lagging behind on yield crypto products. Europe and Canada had already taken the lead with ETPs including staking. With this launch, Wall Street is starting to catch up.
And if this Rex-Osprey Solana ETF proves popular, expect to see a wave of similar ETFs, on Ethereum or other yield blockchains, to arrive soon.
