What Is a Solana Staking ETF and How Does It Work?

The SEC has made a decision on the Solaana staking ETF approval, which is set to be the first ever yield-generating one. With hundreds of ETF filings, SOL has taken the lead after Bitcoin and Ethereum. As a result, there’s high attention on the exchange-traded funds, especially as it comes with staking features. Let’s discuss what exactly that means.

What is a Solana Staking ETF?

As the name suggests, Solana staking ETF is a special type of investment fund that will allow investors to invest in SOL just like a stock. However, the staking adds additional benefits as it would let investors earn rewards on staking, similar to interest earned on a high-yield savings account.

Notably, investing in exchange-traded funds frees the investor from managing crypto wallets, validators, and even exchanges. The individual simply needs to buy the ETF from a brokerage account similar to a stock.

How does Solana Staking ETF work?

An ETF issuer creates an exchange-traded fund and buys the underlying digital asset. In the case of Solana staking ETF, the issuer will buy and hold real SOL tokens on behalf of the investors. If the investor opts to stake, the issuer will stake that for them.

As it will benefit the Solana network and secure it, the network will pay the investor staking rewards. To the individual, it will be similar to earning interest on their investment.

$SOL
How does a Solana Staking ETF pay yields (and taxes)?

REX Shares just launched the first-ever Solana Staking ETF — the REX-Osprey™ SOL + Staking ETF — trading starts this Wednesday!

Now, $SOL investors can earn staking rewards and price upside — all through a traditional… pic.twitter.com/OjXumsnioL

— Cobak (@CobakOfficial) July 1, 2025

The ETF itself is an investment for the investor, and the reward will depend on the Solana price movements. If the SOL price goes up, the investment grows. Additionally, staking would serve as an extra incentive for investing in it.

REX-Osprey SSK SOL ETF Going Live on July 2

The first-ever Solana Staking ETF, REX-Osprey SSK, is going live on July 2 in the US. It’s a major milestone in the crypto industry as the investors have been awaiting an altcoin ETF this year. Notably, the exchange-traded fund is getting launched with the SSK ticker and will be listed on the Chicago Board Options Exchange (CBOE).

Interestingly, this crypto trust is different from others and is structured under the Investment Company Act of 1940 using a C-Corporation format. This makes the staking process legal and allows the distribution of the rewards without any regulatory or custody-related troubles.

Experts believe this SOL staking ETF could pave the way for other altcoin-based funds. Solana price could also gain an upward trajectory like Bitcoin did with its exchange-traded fund launch. Besides, this could influence the SEC’s decision on the Ethereum staking ETFs, which they objected to earlier.