Exploring a New Crypto Frontier on Wall Street
Wall Street is stepping into a new crypto frontier with the launch of the REX-Osprey Solana + Staking ETF (SSK). This ETF gives investors access to Solana, the world’s sixth-largest cryptocurrency, without needing to hold the token directly. It began trading on the Cboe BZX Exchange, making it the first U.S. ETF that invests directly in Solana.
Analysts believe this new fund could open the door to more crypto ETFs based on lesser-known coins like Cardano, XRP, and Litecoin. But this new opportunity also brings risk. While crypto continues to gain popularity, not every coin will gain enough support to become mainstream.
The New Crypto Frontier Comes with Staking and Strategy
SSK offers more than just Solana exposure. It also includes staking, which allows the fund to earn rewards by locking its tokens. These rewards go to the investors and could boost returns by around 7.3% per year. This is the first U.S. crypto ETF to allow staking.
However, the fund doesn’t only invest in Solana directly. It uses around 40% of its assets to buy other Solana-linked ETFs from outside the U.S. That approach may reduce risks tied to currency, but it also leads to higher fees. SSK’s total yearly cost is 1.4%, much more than most Bitcoin ETFs, which charge around 0.25%.
Even with the higher cost, some investors may find SSK attractive due to its early position in this new crypto frontier. Experts say its structure—filed under the 1940 Securities Act—may have made it easier for the SEC to approve.
Will This New Crypto Frontier Attract Demand?
Many still wonder how much interest Solana and similar crypto ETFs will generate. Bitcoin ETFs brought in over $130 billion since their launch in January 2024. Ethereum ETFs, which launched later, attracted only $10 billion. Solana may struggle to match those numbers.
Large financial firms like Fidelity and Franklin Templeton have also applied to launch their own Solana ETFs. If those funds offer lower fees, they could become serious competition for SSK. Still, SSK may benefit from being the first Solana ETF in the U.S.
The rise of this new crypto frontier shows that digital assets are moving deeper into traditional finance. While risks remain, the launch of SSK is a sign that smaller cryptocurrencies like Solana are starting to gain serious attention.