- Solana (SOL): A fast, low-cost blockchain often used for decentralized apps and finance (DeFi).
- ETF (Exchange-Traded Fund): A type of fund you can buy on the stock market, like a stock.
- Staking: Locking up crypto to help run the network and earn rewards.
- SEC (Securities and Exchange Commission): The U.S. regulator for investments.
The first U.S. staked cryptocurrency exchange-traded fund (ETF) will launch this Wednesday. This means investors can buy the fund, hold Solana (SOL), and earn rewards from staking.
The REX-Osprey fund will let investors own real SOL and get extra income from staking. This could help more big companies and investors join the crypto space.
In May, the U.S. Securities and Exchange Commission (SEC) said that staking does not break U.S. securities laws. But it still hasn’t decided yet on staked ETFs or other crypto funds for altcoins.
SOL price goes up
After the ETF news, Solana’s price rose 6% to about $158, according to Coingecko. This means SOL is up more than 12% in the last week.
Even with this jump, Solana’s price is still 46% below its all-time-high in January, according to CoinGecko.
Right now, Solana’s total value (market cap) is about $79.5 billion, making it the 6th biggest cryptocurrency.
Some experts believe that Solana ETF approval could kick off an “altcoin summer,” where other altcoin funds also do well. Bloomberg’s top ETF expert, Eric Balchunas, said in June that many of these funds could be approved by July, with Solana leading the way.
The launch of the first U.S. staked Solana ETF could open the door for more crypto funds and bring more big investors into the market. If more altcoin ETFs follow, we could see new growth and interest in the crypto space this summer.
