First US Solana Staking ETF Launches with Strong Initial Performance

SSK Sees Impressive Inflows and Trading Volume

The inaugural Solana staking ETF in the United States has concluded its first trading day with notable enthusiasm. The fund garnered $12 million in initial investments and recorded a trading volume of $33 million, as reported by Bloomberg ETF analyst Eric Balchunas.

SSK Surpasses Other Crypto Futures ETFs

Trading under the ticker SSK on the Cboe BZX Exchange, the REX-Osprey Solana Staking ETF stands out as the first of its kind in the US, offering direct exposure to spot Solana while enabling investors to benefit from staking yields. This launch comes at a time of increasing interest in cryptocurrency-related ETFs, although it did not match the extraordinary first-day trading volumes seen with spot bitcoin and Ether ETFs earlier this year.

Balchunas highlighted that SSK’s debut outperformed the trading volumes of both Solana and XRP futures ETFs, as well as the average ETF launch. However, it still fell short of the staggering $4.6 billion in first-day trading activity achieved by spot bitcoin ETFs in January 2024.

Innovative Structure Bypasses Traditional Filing Process

The ETF’s unique structure allowed it to bypass the conventional 19b-4 filing process, utilizing the Investment Company Act of 1940 instead. Balchunas previously noted that this was accomplished by allocating a minimum of 40% of its assets to other exchange-traded products, mainly those located outside the US. This strategy followed earlier regulatory challenges from the SEC, which had expressed concerns regarding the product’s compliance with securities laws. Consequently, Anchorage Digital has been appointed as the ETF’s staking and custodian partner.

Positive Start for SSK

Bloomberg’s James Seyffart characterized the ETF’s launch as a “healthy start,” mentioning that shares worth $8 million exchanged hands within the first 20 minutes of trading. The successful debut may serve as an indicator of institutional interest in a potential spot Solana ETF in the US, which analysts speculate could gain approval later this year. Both Balchunas and Seyffart have recently assigned a 95% likelihood for such approvals by year-end, reflecting a sense of optimism in the broader market, despite the currently muted trading volumes in spot bitcoin and Ether ETFs.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.