Solana is set to make history as the first U.S. spot ETF offering on-chain staking rewards launches, marking a significant milestone for both the blockchain and the broader crypto investment landscape.
Tomorrow, July 2, 2025, the REX-Osprey SOL + Staking ETF will begin trading, giving investors regulated access to Solana (SOL) and, for the first time, the ability to earn staking rewards directly through an ETF structure. This innovation bridges the gap between traditional finance and blockchain, allowing mainstream investors to participate in Solana’s network rewards without the technical hurdles of managing wallets or staking themselves .
Market Reaction and Price Movements
The anticipation around the ETF launch has already sparked notable price action. Solana surged nearly 6% to an intraday high of $158, before settling around $152, keeping the token about 44% above its year-to-date low. Over the past week, SOL has gained more than 12%, reflecting growing investor confidence and excitement about the ETF’s potential impact .
However, the initial rally has been tempered by a more cautious outlook as traders digest the news. Derivatives data shows that while long positions slightly outnumber shorts, the profit currently lies with the bears, suggesting that many investors who bought during the hype are now underwater. This signals a more measured, short-term sentiment as the market waits to see how the ETF performs in its first days of trading.
Why This ETF Matters
Unlike previous crypto ETFs, which have typically excluded staking due to regulatory and operational complexities, the REX-Osprey SOL + Staking ETF is the first to integrate on-chain staking rewards. This means investors can benefit from both price exposure and passive income, a combination that could set a new standard for future crypto investment products .
The move is also seen as a step toward broader institutional adoption. By offering a regulated, easy-to-access product, the ETF could attract new capital from investors who have been hesitant to engage directly with crypto exchanges or self-custody solutions . If the ETF sees strong inflows, it could pave the way for Solana’s inclusion in diversified crypto baskets alongside established assets like Bitcoin and Ethereum.
Challenges and Cautious Optimism
Despite the excitement, some analysts urge caution. The Grayscale Solana Trust (GSOL), which has existed for over three years, manages only about $75 million in assets—a stark contrast to the $10 billion held by Grayscale Ethereum Trust before the ETH spot ETF launch. This suggests that institutional demand for Solana may still be developing, and the ETF’s success is not guaranteed .
Technical indicators also point to a potential pullback. SOL has slipped below its 50-day simple moving average, and the Relative Strength Index (RSI) has dropped from 55 to 51, indicating fading buying pressure. If the price falls below key support at $143, further downside could follow, with the next major support at $126.
Additionally, on-chain data shows a decline in stablecoin market cap on Solana—from $13 billion in April to $10,5 billion now—signaling reduced liquidity and transactional activity. Network revenue has also dropped by over 90% since January, and more than $585 million in SOL is set to be unstaked in the coming months, potentially increasing selling pressure.
Looking Ahead
The launch of the REX-Osprey SOL + Staking ETF is a landmark for both Solana and the crypto ETF market. While the initial price rally has cooled, the product’s success will depend on investor adoption and sustained inflows. If the ETF attracts significant interest, it could help Solana regain momentum and set a precedent for future crypto investment vehicles.
For investors, the ETF offers a new way to gain exposure to Solana’s growth and staking rewards, all within a regulated framework. As the market digests this innovation, all eyes will be on the ETF’s first days of trading to gauge its impact on both Solana and the broader crypto sector.
