Solana Staking ETF Launches July 3 as First SEC-Approved Crypto ETF with C-Corp Structure

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The world of cryptocurrency investing has taken a pivotal step forward with the launch of the first Solana staking ETF in the United States. On July 3, 2025, the REX-Osprey Solana and Staking ETF officially began trading, marking a historic milestone as the first SEC-approved crypto ETF built on a C-Corp structure. This groundbreaking financial product, brought to market by REX Shares in collaboration with Osprey Funds, opens new doors for traditional investors seeking exposure to Solana (SOL) with the added benefit of staking rewards—directly from a regulated investment vehicle.

A New Era for Crypto ETFs: The REX-Osprey Partnership

REX Shares, a leader in thematic ETF innovation, announced the launch via social media on July 1, confirming that the Solana staking ETF would debut just two days later. Unlike earlier crypto investment products, this ETF doesn’t just track Solana’s price—it actively holds SOL in spot form and participates in on-chain staking, generating yield for shareholders.

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This move positions the fund as a hybrid of traditional finance (TradFi) and decentralized finance (DeFi), offering institutional-grade compliance while capturing the core value proposition of blockchain: ownership and passive income. The launch also sets a precedent for future digital asset ETFs, potentially accelerating regulatory clarity in the U.S. crypto market.

Behind the Scenes: Collaboration with Osprey Funds and SEC Approval

The journey to launch began months earlier. In May 2025, REX Shares and Osprey Funds jointly filed with the U.S. Securities and Exchange Commission (SEC) to introduce two C-Corp structured crypto ETFs—one focused on Solana and another on Ethereum (ETH). Both were designed to hold spot assets and incorporate staking mechanisms, a feature previously unapproved in mainstream U.S. financial products.

The approval of the Solana version signals growing regulatory confidence in secure, transparent crypto custody and staking operations. With full SEC oversight, investors gain assurance that the fund adheres to stringent reporting, auditing, and operational standards—something retail buyers of direct crypto often lack.

Understanding C-Corp Structure: How It Works and Why It Matters

One of the most significant aspects of this ETF is its C-Corp (C Corporation) structure, which fundamentally differs from traditional ETFs commonly seen in stock or bond markets.

What Is a C-Corp ETF?

Most conventional ETFs operate as pass-through entities—such as trusts or mutual funds—where profits flow directly to investors without being taxed at the fund level. This avoids double taxation and keeps costs low.

In contrast, a C-Corp ETF is treated as a standalone taxable entity. This means:

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While this results in double taxation, the C-Corp model offers greater flexibility in reinvesting profits, managing capital structure, and complying with U.S. securities law—especially when dealing with complex assets like staked cryptocurrencies.

Despite the tax trade-off, many analysts view this structure as a necessary compromise to achieve regulatory approval in a cautious financial environment. As precedent is set, future iterations may benefit from legislative updates that reduce tax inefficiencies.

Market Reaction: SOL Price Jumps 7% Post-Announcement

News of the ETF’s approval triggered an immediate market response. According to data from CoinGecko, Solana’s price surged from $149.67 to nearly $160, marking a 7% increase within hours of the announcement.

At an $82.4 billion market cap**, SOL remains the **sixth-largest cryptocurrency globally**, trailing behind Bitcoin, Ethereum, Tether, Binance Coin, and USD Coin. While still far from its all-time high of **$295.83 reached in January 2025, the renewed investor interest suggests growing optimism around institutional adoption.

The ETF’s launch not only boosts Solana’s visibility but also reinforces its position as a leading smart contract platform capable of supporting scalable decentralized applications (dApps), NFTs, and DeFi protocols.

Could This Spark a Broader Altcoin ETF Boom?

Analysts believe this could be just the beginning. Eric Balchunas, senior ETF analyst at Bloomberg, suggested in early June that Solana could be the first altcoin to break through the regulatory barrier—and potentially ignite a wave of similar filings.

“If Solana gets approved, it opens the floodgates,” Balchunas noted. “We could see a summer surge in altcoin ETF applications.”

With Bitcoin and Ethereum spot ETFs already gaining traction, investors and asset managers are now turning their attention to high-performing layer-1 blockchains like Solana, Avalanche, and Polkadot. The success of this staking-enabled product may encourage others to follow suit—especially if yield generation becomes a key selling point.

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Regulatory greenlights for additional assets could diversify the crypto ETF landscape, offering more targeted exposure and risk-return profiles tailored to different investor strategies.

Frequently Asked Questions (FAQ)

Q: What is a staking ETF?
A: A staking ETF holds cryptocurrency assets directly and participates in blockchain validation (staking) to earn rewards. These rewards are distributed to shareholders as yield, similar to dividends.

Q: Is this ETF holding real SOL tokens?
A: Yes—the REX-Osprey Solana and Staking ETF holds spot SOL tokens, meaning it owns actual cryptocurrency rather than futures or derivatives.

Q: How does staking work within an ETF?
A: The fund stakes its SOL holdings on the Solana network to help secure the blockchain. In return, it earns newly minted tokens as rewards, which are passed through to investors after fees and taxes.

Q: Why is SEC approval important for crypto ETFs?
A: SEC oversight ensures transparency, investor protection, standardized reporting, and compliance with anti-fraud laws—critical for mainstream adoption and trust in digital assets.

Q: Are there tax implications for investors in a C-Corp crypto ETF?
A: Yes. Due to the C-Corp structure, gains are taxed at both the corporate level and again when distributed as dividends to shareholders—resulting in potential double taxation.

Q: Will there be an Ethereum staking ETF soon?
A: REX Shares and Osprey Funds have already filed for one. With ETH’s strong institutional interest and existing spot ETF momentum, approval could follow a similar timeline.

Core Keywords

This landmark launch represents more than just a new financial product—it’s a signal of maturation in the digital asset ecosystem. As regulatory frameworks evolve and investor demand grows, products like the REX-Osprey Solana and Staking ETF pave the way for broader integration between blockchain innovation and traditional capital markets.