The global interest in cryptocurrencies has surged again in 2025, fueled by the successful launch of spot Bitcoin and Ether ETFs in the U.S. in early 2024. These landmark approvals opened a regulated pathway for investors to access crypto markets, bridging the gap between traditional finance and digital assets. Building on that momentum and amid ongoing buzz of potential altcoin ETF approvals, the debut of the first-ever Solana staking ETF in July 2025 in the US is setting a new precedent for yield-generating crypto investment products.
Surging Interest in Staking-enabled ETFs
Following the success of U.S. spot Bitcoin and Ether ETFs in 2024, institutional demand for altcoin-based funds has been growing rapidly. Solana (SOL), known for its high-speed transactions and low fees, has emerged as a strong contender.
The launch of the REX-Osprey Solana + Staking ETF (SSK) on July 2, 2025, on the Cboe BZX Exchange marks a significant milestone. On its first day, SSK recorded $12 million in inflows and $33 million in trading volume, underscoring investor enthusiasm for exposure to SOL combined with staking rewards.
Rex Osprey SOL Staking ETF debut performance | Source: X
Prediction markets like Polymarket estimate a 99%+ chance of spot Solana ETF approval by late 2025, while Bloomberg analysts Eric Balchunas and James Seyffart give it a 95% probability. This momentum reflects not only growing institutional interest but also confidence in Solana’s expanding ecosystem.
What Is Solana (SOL)?
Solana is a high-performance Layer 1 blockchain designed for scalability, speed, and low-cost transactions. Often called an “Ethereum killer,” Solana supports decentralized finance (DeFi), NFTs, Web3 gaming, and tokenized real-world assets (RWA).
As of July 2025, Solana is the second-largest blockchain ecosystem for dApps after Ethereum, with its DeFi ecosystem alone valued at over $8.6 billion. The network has also reclaimed its position as the second-largest player in decentralized exchange (DEX) volumes, surpassing Ethereum with $64.1 billion in 30-day activity, according to DefiLlama. The Solana DeFi ecosystem flourished in 2025, with thriving platforms like Raydium, Jupiter, and Magic Eden driving on-chain activity, even as memecoin activity continues to rise, powered by memecoin launchpads like Pump.fun and LetsBONK.fun.
Solana DeFi TVL | Source: DefiLlama
With upgrades like Firedancer and Alpenglow on the horizon, Solana aims to achieve sub-second transaction finality and enhanced network throughput. These advancements position it as a key player in the blockchain industry and a logical candidate for ETF products.
Following the launch of the REX-Osprey Solana Staking ETF on July 2, 2025, Solana’s native token (SOL) saw a brief rally of 6%, reaching around $158, before adjusting slightly as broader market conditions weighed on sentiment. This initial price movement highlights both the excitement around staking-enabled ETFs and the ongoing volatility of the crypto market.
What Is a Solana Staking ETF?
A Solana staking ETF is a special type of exchange-traded fund that not only gives investors exposure to Solana’s price movements but also passes along rewards earned from staking SOL tokens.
The REX-Osprey SSK ETF launched on July 2, 2025, is the first such investment product in the US, which allows investors to buy shares through traditional brokerage accounts, eliminating the need to manage crypto wallets or validators. Behind the scenes, REX-Osprey holds actual SOL tokens and stakes them via Anchorage Digital, a federally chartered custodian and staking partner.
This setup enables the fund to earn staking rewards (currently yielding about 7.3% annually) and distribute them to investors. For individuals, this is comparable to earning interest from a high-yield savings account, only in a crypto context.
Instead of buying a Solana Staking ETF, you can also buy spot SOL directly on centralized exchanges like BingX. This gives you full ownership of your tokens and the flexibility to stake them yourself or trade them anytime.
How Does a Solana Staking ETF Work?
A Solana Staking ETF simplifies crypto investing by allowing you to earn staking rewards without needing to manage wallets, validators, or private keys. Here’s how it works step by step:
1. ETF Creation – The fund manager, REX-Osprey, buys actual Solana (SOL) tokens to back the ETF. These tokens form the core assets of the fund, which is traded under the ticker SSK.
2. Staking Integration – Instead of holding SOL passively, the ETF stakes these tokens on the Solana network through Anchorage Digital, a regulated crypto custodian. This means the SOL held by the fund actively participates in validating transactions and securing the blockchain.
3. Reward Distribution – As the staked SOL earns rewards from the network (currently around 7.3% annually), these rewards are collected and passed on to investors. This creates a passive income stream similar to earning dividends from stocks or interest from bonds.
4. Investor Access – Investors can buy or sell shares of the ETF on the Cboe BZX Exchange just like they would with any traditional stock or ETF, using a regular brokerage account.
This innovative structure complies with U.S. regulations because the ETF operates under the Investment Company Act of 1940 and uses a C-Corporation format. This approach ensures staking rewards can be distributed legally and securely, making it a convenient and regulated way for both retail and institutional investors to access Solana’s price growth and staking income.
Why Is a SOL Staking ETF a Game Changer for Investors?
The Solana Staking ETF offers investors a powerful combination of growth and income potential, setting it apart from traditional crypto ETFs. By holding and staking SOL tokens, the fund provides exposure to Solana’s price movements while also earning staking rewards, currently yielding around 7.3% annually. This dual-income approach means investors can benefit from capital appreciation when SOL’s price rises and earn passive income even during periods of price stability.
For retail investors, the ETF simplifies access to Solana by removing the need to manage private keys, set up crypto wallets, or navigate staking protocols. Instead, they can buy shares through a standard brokerage account, making crypto participation as easy as investing in a stock. For institutional investors, the regulated structure under the Investment Company Act of 1940 and the use of Anchorage Digital’s federally chartered custody services ensure compliance with strict governance and security standards.
Importantly, Solana’s staking yields have historically outpaced those of Ethereum, which averaged around 3.5–4.5% post-Merge. This makes the SOL staking ETF particularly appealing for yield-seeking investors. Combined with Solana’s growing on-chain activity, driven by DeFi, NFTs, and tokenized real-world assets, the ETF provides a convenient, secure way to tap into blockchain-native returns without the operational and regulatory hurdles of direct crypto ownership.
Beyond US Markets: Canada and Europe’s SOL Staking ETFs
Canada took the lead in April 2025 by launching the first spot Solana ETFs with staking features on the Toronto Stock Exchange. Four issuers, 3iQ, Purpose Investments, Evolve, and CI Galaxy, introduced staking-enabled funds that each allocate up to 50% of holdings for on-chain staking, generating yields between 2–3.5% annually. These products attracted rapid attention, pulling in over CAD 191 million in assets by mid-June 2025, with the 3iQ Solana Staking ETF (SOLQ) alone accumulating around 87.6% of that total. Notably, SOLQ launched with zero management fees for the first year, a strategic move to attract early investors.
3iQ's Solana staking ETF performance | Source: 3iQ
In Europe, Bitwise’s Solana Staking ETP (BSOL), listed on Xetra, offers even higher gross yields of 6.48% APY at a competitive 0.85% management fee, significantly outperforming rivals like 21Shares, which averages a 5.49% yield with a much heavier fee load. BSOL utilizes institutional-grade cold storage and transparent indexing (Compass Solana Total Return Monthly Index), offering investors reliable staking returns and full asset backing.
Solana Staking ETF vs. Spot Solana ETF: What’s the Difference?
As crypto investment products evolve, investors are asking whether a spot Solana ETF could soon join the market alongside the newly launched Solana Staking ETF. Here’s how the two differ:
The Solana Staking ETF offers investors a unique advantage by combining exposure to SOL’s price movements with the added benefit of earning staking rewards. This means shareholders not only gain from potential price appreciation but also receive passive income generated by the network’s staking mechanism, currently yielding around 7.3% annually. By staking the SOL tokens it holds, the ETF contributes to securing the Solana blockchain while distributing rewards directly to investors. This dual-income approach makes the staking ETF especially attractive to those seeking yield in addition to capital growth, all within the familiar and regulated framework of traditional financial markets.
Polymarket sees nearly 100% chance of spot Solana ETF approval by July 31 | Source: Polymarket
In contrast, a spot Solana ETF would focus purely on tracking SOL’s market price, much like the spot Bitcoin and Ether ETFs approved in 2024. Investors in such a fund would benefit from Solana’s price appreciation but would not receive any staking rewards. Despite this limitation, market analysts are highly optimistic about the approval of spot Solana ETFs in the U.S. Bloomberg’s Eric Balchunas and James Seyffart estimate a 95% probability of approval by Q4 2025, while Polymarket participants place the odds even higher at over 99% by as soon as July 31, 2025. The SEC’s recent acceptance of staking within ETF structures, as demonstrated by REX-Osprey’s SSK launch, has strengthened confidence that a wave of altcoin ETFs, including Solana, could soon hit U.S. markets, potentially ushering in what analysts are calling “altcoin ETF summer.”
Should You Invest in a SOL Staking ETF?
While a Solana Staking ETF offers an attractive mix of price exposure and passive income, investors should carefully weigh the potential risks. Like all cryptocurrencies, Solana (SOL) is known for its volatility, with prices subject to significant swings driven by market sentiment, regulatory developments, and technological changes. Additionally, staking rewards, though currently yielding around 7.3% annually, depend on the performance of validators and the overall stability of the Solana network. Any issues such as validator misbehavior, network downtime, or slashing events could impact the flow of rewards.
It’s also important to consider costs. Management fees and staking service charges, while typically lower than direct crypto custody solutions, can reduce net returns over time. However, for many investors, the benefits outweigh these challenges. The ETF’s regulated structure, simplified access through traditional brokerage accounts, and dual earning potential make it a compelling option for diversifying portfolios and tapping into blockchain-native yields without the technical complexities of direct participation.