Quick Takeaways
-
Successful Launch: The first US Solana staking ETF, SSK, debuted with $12 million in inflows and $33 million in trading volume, demonstrating strong early interest.
-
Innovative Structure: SSK bypassed the standard 19b-4 filing process by allocating 40% of its assets to non-US ETFs, allowing it to navigate regulatory challenges.
-
Market Comparison: While SSK’s opening volume outperformed Solana and XRP futures ETFs, it still lagged significantly behind the $4.6 billion first-day trading of Bitcoin ETFs.
- Positive Outlook: Analysts predict a 95% chance for the approval of a spot Solana ETF by year-end, indicating growing institutional interest in the crypto space despite current market conditions.
SSK Makes Strong Debut as First US Solana Staking ETF, Logs $33M Volume
The REX-Osprey Solana Staking ETF (SSK) has officially launched, marking a significant milestone in the U.S. financial landscape. According to Bloomberg ETF analyst Eric Balchunas, SSK attracted $12 million in inflows and recorded $33 million in trading volume on its first day.
Trading under the ticker SSK on the Cboe BZX Exchange, this fund provides investors with direct access to spot Solana while enabling them to earn staking yields. Consequently, the ETF’s entry comes during a period of growing interest in crypto ETFs. However, it falls short compared to the remarkable first-day trading volumes of Bitcoin and Ether ETFs this year.
Interestingly, Balchunas reported that SSK outperformed both Solana and XRP futures ETFs on its debut day. Despite these achievements, it still lagged behind the $4.6 billion in trading activity seen by Bitcoin ETFs in January 2024.
The ETF employs a unique structure, bypassing the traditional 19b-4 filing process by utilizing the Investment Company Act of 1940. This approach lets SSK allocate at least 40% of its assets to other exchange-traded products, mainly outside the U.S. Such a structure addresses previous concerns raised by the SEC over the ETF’s compliance with securities laws. Anchorage Digital will serve as the ETF’s staking and custodian partner.
Bloomberg’s James Seyffart characterized SSK’s opening as a “healthy start,” noting that $8 million worth of shares changed hands within just the first 20 minutes. This strong debut may help assess institutional demand for a potential spot Solana ETF, which experts believe could gain approval later this year. Both Balchunas and Seyffart have suggested a 95% probability for such approvals before year-end, signaling optimism in the broader market despite current subdued volumes in spot Bitcoin and Ether ETFs.
The launch of SSK not only offers a fresh investment opportunity but also underscores the ongoing evolution of cryptocurrency solutions within financial markets.
Discover More Technology Insights
Explore the future of technology with our detailed insights on Artificial Intelligence.
Explore past and present digital transformations on the Internet Archive.
Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
CryptoV1
