The world of crypto exchange-traded funds (ETFs) is on the brink of a significant milestone. REX-Osprey has announced the upcoming launch of the first staking-enabled cryptocurrency ETF in the United States—SSK, a fund designed to track Solana’s performance while generating yield through on-chain staking. This development marks a pivotal moment not only for Solana but potentially for the broader crypto ETF landscape, especially Ethereum (ETH).
Bloomberg ETF analyst Eric Balchunas confirmed that the U.S. Securities and Exchange Commission (SEC) has raised no further objections, suggesting the fund’s structure now complies with regulatory requirements. If approved, SSK could open the door to a new era of passive income-generating crypto ETFs, raising a critical question: Will Ethereum spot ETFs also gain staking functionality if this model succeeds?
👉 Discover how staking-powered ETFs could reshape crypto investing in 2025.
Understanding REX-Osprey: A Powerhouse in Crypto ETF Innovation
REX-Osprey is a strategic collaboration between two established players in the digital asset investment space: REX Shares and Osprey Funds. Together, they combine deep expertise in thematic ETF development and digital asset custody to pioneer next-generation financial products.
REX Shares is known for its innovative approach to niche ETFs, with prior offerings focused on volatility, leveraged strategies, and blockchain infrastructure. Their forward-thinking model positions them as a key player in evolving financial markets.
Osprey Funds, on the other hand, built a reputation through its suite of digital asset trusts, including the Osprey Bitcoin Trust (OBTC). Though OBTC was later acquired by Bitwise and integrated into its Bitcoin ETF (BITB), Osprey’s early market presence demonstrated strong product execution and investor demand for accessible crypto exposure.
This partnership brings together institutional rigor and crypto-native experience—essential qualities for navigating complex regulatory terrain and delivering compliant, high-performing products like SSK.
How the SSK Solana ETF Works
According to its filing with the SEC, the SSK ETF will be listed on the Nasdaq and aims to invest over 50% of its assets directly in Solana (SOL). Unlike traditional spot ETFs that merely track price movements, SSK plans to actively participate in Solana’s proof-of-stake consensus mechanism by staking SOL tokens.
This means investors gain:
- Exposure to Solana’s price appreciation
- Passive income from staking rewards, distributed as part of the fund’s returns
Staking rewards are earned when validators secure the network by locking up SOL. By integrating this feature at the ETF level, REX-Osprey offers a regulated, simplified way for retail and institutional investors to earn yield—without managing private keys or running validator nodes.
This structural innovation could set a new benchmark for future crypto ETF designs.
👉 Learn how staking rewards can boost long-term crypto returns—without the complexity.
Could Ethereum Spot ETFs Add Staking Next?
Currently, approved Ethereum spot ETFs—offered by firms like BlackRock, Fidelity, and Bitwise—only provide price exposure. They do not include staking due to ongoing regulatory caution from the SEC. In fact, earlier proposals that included staking components were either rejected or modified to exclude it.
However, if SSK gains approval with full staking functionality, it could signal a shift in the SEC’s stance. Success here might encourage regulators to reconsider Ethereum ETFs with similar yield-generating mechanisms.
Several major players are already preparing:
- Fidelity
- Bitwise
- Grayscale
- VanEck
- 21Shares
- Franklin Templeton
- Canary Capital
All have filed applications for Solana ETFs. Their readiness suggests that once one product clears the final hurdle, others may follow rapidly.
Given Ethereum’s larger market cap, deeper ecosystem, and higher staking yields (historically ranging from 3% to 6%), adding staking to ETH ETFs could unlock massive investor interest.
Key Factors That Could Influence SEC’s Decision on ETH Staking
| Consideration | Why It Matters |
|---|---|
| Regulatory Precedent | A green light for Solana staking creates legal momentum |
| Investor Demand | Yield-seeking investors favor income-generating assets |
| Network Security | Staking strengthens blockchain integrity |
| Custody Standards | Regulated custodians reduce risk of misuse |
While no official timeline exists for ETH staking approval, precedent often drives policy. If SSK operates smoothly and complies with reporting standards, Ethereum may not be far behind.
Why Staking-Enabled ETFs Matter for Mainstream Adoption
The integration of staking into regulated ETFs represents more than just a product upgrade—it’s a bridge between decentralized finance (DeFi) and traditional finance (TradFi).
For mainstream investors, staking has traditionally posed challenges:
- Technical complexity
- Security risks
- Tax reporting uncertainty
A regulated ETF solves these issues by:
- Handling technical operations behind the scenes
- Providing audited financial statements
- Offering clear tax documentation (e.g., Form 1099)
This lowers the barrier to entry and makes earning yield on crypto as simple as buying a stock.
Moreover, staking enhances network security by incentivizing long-term holding and active participation. Widespread adoption through ETFs could strengthen both Solana and eventually Ethereum at the protocol level.
👉 See how regulated crypto products are making staking safer and more accessible than ever.
Frequently Asked Questions (FAQ)
Q: What is a staking-enabled crypto ETF?
A: It's an exchange-traded fund that not only tracks a cryptocurrency’s price but also earns yield by participating in its proof-of-stake network. Investors receive both capital appreciation and periodic income from staking rewards.
Q: Is the SSK ETF already approved?
A: As of now, the SEC has not formally approved SSK, but the absence of further comments suggests it may be close to clearance. Final approval is expected around October 10, 2025, unless extended.
Q: Can I earn staking rewards with current Ethereum ETFs?
A: No. All currently approved Ethereum spot ETFs provide price exposure only and do not include staking functionality due to regulatory restrictions.
Q: How does staking work inside an ETF?
A: The fund operator stakes the underlying crypto assets (like SOL or ETH) through authorized validators. Rewards are collected, net of fees, and reinvested or distributed to shareholders periodically.
Q: Are staking rewards taxable?
A: In most jurisdictions, including the U.S., staking rewards are considered taxable income when received. ETFs simplify this by handling tax reporting through standard forms like 1099.
Q: Why hasn’t the SEC approved staking for Ethereum ETFs yet?
A: The SEC has expressed concerns about investor protection, custody risks, and potential centralization of control over validator nodes. However, evolving compliance frameworks may address these issues over time.
Final Thoughts: A New Era for Crypto Investing
The potential approval of SSK, REX-Osprey’s staking-enabled Solana ETF, could mark a turning point in how investors interact with digital assets. By combining regulatory compliance with DeFi-like yields, it offers a compelling value proposition for both retail and institutional markets.
If successful, this model may pave the way for Ethereum ETFs with staking, unlocking passive income at scale within a trusted financial framework. With major asset managers already lined up and regulatory signals turning positive, 2025 could be the year crypto investing truly goes mainstream.
For forward-thinking investors, staying informed—and positioned—is key.
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