Solana Set to Launch First US ETF, Potentially Sparking Crypto ETF Wave
Solana, the sixth-largest cryptocurrency by market capitalization, is poised to make a significant leap into the traditional finance world. REX Shares, an asset management firm, has announced the anticipated launch of the first US-based Exchange Traded Fund (ETF) for Solana, expected to debut this Wednesday.
The news has already fueled a surge in Solana’s value, with the cryptocurrency experiencing a notable increase of 4.7% in the last 24 hours and an impressive 19.2% over the past week.
Other Cryptocurrencies Eyeing ETF Approval
Solana’s potential ETF launch could pave the way for other cryptocurrencies to follow suit. Several digital assets, including XRP, Litecoin, Dogecoin, Cardano, Polkadot, Avalanche, Hedera, and Sui, have pending ETF applications. Experts suggest that there is a strong possibility that these ETFs could receive approval as early as July.
REX Shares Confident in Solana ETF Launch
According to sources, Greg King, CEO of REX Shares, has indicated that the Solana ETF is scheduled to begin trading this Wednesday. While the Securities and Exchange Commission (SEC) has not yet officially confirmed the approval, REX Shares has publicly stated on social media platform X (formerly Twitter) that its ETF will launch this week.
REX Shares Tweet:
“Coming Wednesday: The First-Ever Staked Crypto ETF in the U.S.! Introducing the REX-Osprey™ SOL + Staking ETF, designed to track the performance of Solana while generating yield through on-chain staking. ✔️ SOL exposure ✔️ Staking rewards A new era of yield-generating…”
The ETF, named SSK, will not only track the price of Solana but also enhance the value of its shares through staking rewards. While staking currently offers returns of approximately 5%, the ETF may not be able to achieve this full percentage due to the need to maintain liquidity for withdrawals.
Impact on the Cryptocurrency Market
The approval of a cryptocurrency ETF with staking rewards could open doors for similar products. REX Shares, for instance, is also seeking to launch an Ethereum ETF with similar staking features. This could attract investors seeking both returns and security in the cryptocurrency market, whether it be SOL or ETH.
Solana’s Price Surge Reflects ETF Anticipation
Solana’s recent price surge of 19.2% over the past week reflects the market’s enthusiasm for the potential ETF launch. REX Shares’ announcement has injected optimism into the market.
Currently, SOL holds the position of the sixth-largest cryptocurrency, with a market capitalization of $84.3 billion, making it a key competitor to Ethereum ($300 billion) in the smart blockchain space.
For context, US Bitcoin ETFs have attracted inflows of $48.8 billion since their launch, while Ethereum ETFs have grown by $4.2 billion. While Solana ETFs are expected to generate smaller numbers, they are still anticipated to have a positive impact on the cryptocurrency’s price.
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