An important milestone in the encryption industry! The first Solana stake ETF has been approved in the US.

Gate news, the first Solana Staking ETF has just been approved by the SEC. This marks an important milestone for the crypto assets industry, as this SOL ETF will become the first exchange-traded fund in history with staking capabilities (ETF). What does this actually mean? The following will explore this.

What is Solana staking ETF? As the name suggests, the Solana staking ETF is a special investment fund that allows investors to invest in SOL just like investing in stocks. However, staking itself also brings additional benefits, as it allows investors to earn staking rewards, similar to the interest from a high-yield savings account.

It is worth noting that investing in exchange-traded funds (ETF) allows investors to do so without managing crypto wallets, validators, or even exchanges. Individuals can simply purchase the ETF from their brokerage account, just like investing in stocks.

How does the Solana stake ETF work? The ETF issuer creates an exchange-traded fund (ETF) and purchases the underlying digital assets. In the case of the Solana stake ETF, the issuer will purchase and hold real SOL tokens on behalf of the investors. If the investors choose to stake, the issuer will stake on their behalf.

Since this will benefit the Solana network and ensure its security, the network will pay staking rewards to investors. For individuals, this is similar to earning investment interest.

An ETF itself is an investment for investors, and its returns will depend on the price trends of Solana. If the SOL price rises, the investment amount will also increase accordingly. In addition, staking will serve as an additional incentive for investing in the ETF.

REX-Osprey SSK ETF will be launched on July 2nd The first Solana staking ETF REX-Osprey SSK will launch in the United States on July 2. This is a significant milestone for the crypto assets industry, as investors have been anticipating a altcoin ETF this year. Notably, the exchange-traded fund (ETF) will be issued under the SSK code and will be listed on the Chicago Board Options Exchange (CBOE).

Interestingly, this crypto trust is different from other trusts; its structure is based on the 1940 Investment Company Act and takes the form of a C corporation. This legalizes the staking process and allows for the distribution of profits without involving any regulatory or custodial issues.

Experts believe that this SOL stake ETF may pave the way for other funds based on altcoins. The price of Solana may also show an upward trend similar to when Bitcoin launched its exchange-traded fund (ETF). Furthermore, this could influence the U.S. Securities and Exchange Commission (SEC) in its approval of the Ethereum stake ETF, which the SEC had previously opposed.

Source: CoinGape

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