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Staking the Claim: Solana ETFs Poised to Draw Billions Through Yield Opportunities

Staking the Claim: Solana ETFs Poised to Draw Billions Through Yield Opportunities

Bitget-RWA2025/09/27 06:02
By:Coin World

- Grayscale, Fidelity, and Bitwise submitted revised S-1 filings for staking-enabled Solana ETFs to the SEC, leveraging proof-of-stake mechanisms to generate yield. - Analysts predict approval within weeks, citing streamlined processes and precedents like REX-Osprey’s successful staking ETF, which attracted $250M in two months. - Staking features address SEC concerns on compliance, with firms outlining clear frameworks for rewards reinvestment and in-kind redemptions. - Market optimism grows as European st

Staking the Claim: Solana ETFs Poised to Draw Billions Through Yield Opportunities image 0

Leading asset managers such as Grayscale, Fidelity, and Bitwise have updated their S-1 applications for spot

(SOL) exchange-traded funds (ETFs) with the U.S. Securities and Exchange Commission (SEC). These revised documents now include staking capabilities, allowing the ETFs to earn returns by utilizing Solana’s proof-of-stake protocol. Market experts, including Nate Geraci from NovaDius Wealth Management and Bloomberg’s James Seyffart, believe that approval could be granted within two weeks, pointing to more efficient regulatory procedures and recent examples like the successful launch of the REX-Osprey Solana Staking ETF title1 [ 1 ]. The addition of staking reflects rising institutional interest in crypto products that generate yield, as seen with Bitwise’s European Solana staking ETP, which recently saw $60 million in new investments title2 [ 2 ].

Recent changes by the SEC, such as the approval of Grayscale’s

Trust conversion to a more uniform structure, have made it easier for similar Solana ETFs to move forward. This new structure permits trading without needing individual approvals for each product, helping to minimize delays title3 [ 3 ]. The updated filings address SEC concerns about staking operations and in-kind redemptions, which are crucial for legal compliance. For example, Fidelity’s proposal details how staking rewards will be reinvested, while Grayscale’s trust allocates Solana tokens specifically for staking title4 [ 4 ]. Analysts attribute the faster review process to the SEC’s growing experience with crypto fund structures, as demonstrated by previous and Ethereum ETF approvals title5 [ 5 ].

The market has responded favorably to these filings. The REX-Osprey

+ Staking ETF (SSK) attracted $10.6 million in net inflows in a single day and surpassed $250 million in assets under management within just two months of its debut title6 [ 6 ]. Furthermore, converting the ETF into a regulated investment company improved its tax efficiency, eliminating federal and state taxes at the fund level title7 [ 7 ]. Bloomberg analysts predict there is a 90% likelihood of approval by the end of October 2025, with some expecting a decision as soon as three to five weeks after the June 2025 submissions title8 [ 8 ]. The SEC’s final deadline for Grayscale’s spot Solana ETF conversion is set for October 10, 2025, but earlier approval could happen if regulatory issues are resolved title9 [ 9 ].

ETFs that incorporate staking could transform how institutions gain exposure to Solana, providing both capital gains and staking rewards. This approach boosts the net asset value (NAV) for investors and fits the broader movement toward yield-oriented crypto investments. Grayscale’s CoinDesk Crypto 5 ETF, which features Solana and

, saw $22 million in trading volume on its first day, indicating robust demand for diversified crypto investment options title10 [ 10 ]. Experts also suggest that the inclusion of staking in Solana ETFs could influence the SEC’s stance on Ethereum ETF approvals, potentially setting a standard for similar products.

Interest from institutional investors in Solana has grown rapidly, with both European staking ETPs and U.S. spot ETFs drawing substantial capital. Bitwise’s European ETP, BSOL, offers an 8% annual yield from staking, distinguishing it from U.S. offerings that currently cannot include staking due to regulatory restrictions. The SEC’s careful consideration of Solana’s classification as a security remains a significant challenge, but regulated futures markets and custodial solutions like the Depository Trust & Clearing Corporation (DTCC) help address many regulatory concerns. Prediction platforms such as Polymarket estimate an 89–95% probability of approval by late 2025, reflecting optimism about regulatory progress.

The potential green light for Solana ETFs represents a major milestone in integrating crypto with mainstream finance. Analysts forecast that approval could bring $3–6 billion in new investments, with SOL price targets ranging from $300 to $1,000 depending on market dynamics. This could speed up adoption in areas like decentralized finance (DeFi), gaming, and tokenized real-world assets, benefiting infrastructure providers such as Coinbase and institutional Solana holders. Nevertheless, risks like network instability and price swings persist, highlighting the importance of prudent risk management for investors.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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