Solana ETF Hits a Healthy $12m in Inflows on Debut Trading Day

The first Solana ETF—and the first crypto staking ETF to be approved in the US—hit the ground running with $12 million in inflows on its debut trading day. According to Bloomberg ETF analyst Eric Balchunas, the REX-Osprey Solana Staking ETF also reached a notable $33 million in trading volume. This notable feat places the newly launched fund in the “top percentile for new launches.”

Strong though they are, the numbers don’t paint the whole picture. Considering that the Solana ETF approval date fell in the same week as July 4th, the demand was perhaps “more muted than it otherwise would be,” according to Balchunas’ colleague, James Seyffart.

Solana ETF Day 1, in Perspective

Dubbed REX-Osprey SOL and Staking ETF, the all-new Solana staking exchange-traded fund (ETF) debuted on the Chicago-based Cboe BZX Exchange on July 2nd. The opening minutes were enough to see that something big was a-brewing.

Namely, the Solana ETF raked $8m in volume in the opening 20 minutes alone, dwarfing the first-day numbers of previously launched Solana futures and XRP futures ETFs. While that’s still a far cry from Bitcoin’s $4.6 billion launch-date numbers, it nevertheless sends out a positive investor signal that paves the way for spot Solana ETFs.

The signal was somewhat timidly picked up by the SOL price radars, which rose to a local high of $161 from $151 following the news of the upcoming ETF. However, the rally was short-lived and went back to its $151 local baseline before adjusting to $157 to close the day. Such volatility prompted some investors to hold their horses just yet, calling the bluff on ETF hype and believing that the structure used for its launch—namely, bypassing the SEC approval process—could be used by other altcoins in the near future. Time will tell.

Institutional Battlefield

The new fund debuted on the Cboe BZX Exchange to much fanfare among the crypto enthusiasts. The earlier debuts of Bitcoin and Ethereum ETFs did little to curb the enthusiasm, with titans like BlackRock and Grayscale among the major issuers.

The fund effectively provides investors with exposure to spot Solana while incorporating on-chain staking rewards. It’s the first of its kind in the United States, which meant that it had to sidestep the regular hoops put in place by the US Securities and Exchange Commission (SEC) to go live. Yes, the REX‑Osprey Solana Staking ETF is trading under SSK.

Not for the want of trying. SEC reportedly rejected two Solana ETF applications before SSK approved it. Even as we speak, the SEC flipped the script and reversed the approval of a Grayscale ETF holding Solana and XRP, vowing to take a closer look at currencies without standalone SEC-approved ETFs.

What Does This Mean for Spot Solana ETFs?

The REX Solana ETF launch is part of the growing trend of introducing yield-based and alternative crypto ETFs, established as another means for financial firms to expand their digital asset offerings with higher exposure to decentralized finance (DeFi). It has the potential to raise crypto awareness and pave the way for its institutional adoption.

While SOL prices fluctuate in the wake of the ETF launch, the fund’s strong performance bolsters the position of the upcoming traditional spot Solana ETH. To quote Balchunas and Seyffart once again, there is a 95% chance that we’ll see it in the coming months.

Since learning about the Solana ETH approval date, several large asset managers, such as VanEck and 21Shares, have already filed applications for spot Solana ETFs to be signed and sealed by the SEC. Some market watchers expect approval by October 2025, although, to be fair, that seems overly optimistic at this point.