SSK Surpasses $100 Million in AUM
SSK, the Solana Staking Exchange-Traded Fund (ETF) from Rex-Soprey, has exceeded $100 million in assets under management (AUM) since its launch on July 2nd. This fund is notable for being the first ETF registered in the U.S. that integrates Solana (SOL) exposure with compensation from OnChain Staking.
Typically, most crypto ETFs are registered under the Securities Act of 1933, which prohibits the distribution of staking fees. In contrast, SSK operates under the Investment Companies Act of 1940, allowing investors to seek yields while not just speculating on asset prices.
Greg King, the founder and CEO of Rex-Soprey, noted that the growth of SSK highlights a strong demand from investors for blockchain and native investment products presented in a familiar format. He mentioned in a press release that SSK “opens the door for mainstream investors to access the benefits of staking Solana through a familiar ETF wrapper.”
Today, SOL is trading at over $200 per coin, reflecting a 25.3% increase over the past week, according to data from Coingecko.
In a conversation with Cointelegraph, King indicated that Rex-Soprey aims to broaden its ETF offerings to address client demands. He mentioned that they have applied for similarly structured ETFs for other cryptocurrencies like XRP, Dogecoin, and Ethereum, with the possibility of exploring even more options.
He believes this product appeals particularly to registered investment advisors (RIAs) and others looking for a new way to receive monthly distributions from their Solana exposure and generate current income.
Institutions Shift Towards Income Generation
SSK’s Solana Fund is part of a wider trend where institutional investors are increasingly looking at staking-based returns as an alternative or complement to traditional bonds.
With high global interest rates and rising Bitcoin prices, asset managers are considering crypto yield strategies more seriously, promoting returns amidst a climate of regulatory clarity in the U.S.
Platforms that provide Ethereum alongside SSK have seen a notable demand, particularly in staking, as well as tokenized U.S. Treasury products. There has been a consistent influx of allocations from facility allocators.
Even though ETFs encounter regulatory obstacles, the launch of SSK may pave the way for future funds.
On June 13, Fidelity submitted the Spot Solana ETF S-1 registration to the U.S. Securities and Exchange Commission (SEC), joining other asset managers like 21Shares, Franklin Templeton, Grayscale, Bitwise, and Canary Capital.
Currently, there’s no Ethereum ETF offering on-chain staking, but this may soon change with clearer guidance from the SEC, allowing fund issuers to find a compliant structure.
