Solana ETF Gets Major Overhaul: What Does REX-Osprey’s Move Mean?

TLDR

• REX-Osprey has converted its Solana ETF to a regulated investment company structure.
• The new structure eliminates federal and state taxes at the fund level, improving tax efficiency.
• Investors will now pay taxes individually, avoiding the double taxation that occurred under the previous C-Corp structure.
• The conversion aligns the Solana ETF with the typical U.S. ETF model, benefiting both retail and institutional investors.
• Assets under management for the Solana ETF have recently reached over $212 million.

REX-Osprey announced a major change to its Solana ETF, SSK SOL + Staking ETF, on September 1. The company converted the ETF’s structure from a C-Corporation to a regulated investment company (RIC). This move aims to enhance tax efficiency for investors.

New Solana ETF Structure Boosts Efficiency

The conversion to a regulated investment company (RIC) structure eliminates federal and state taxes at the fund level. Previously, the fund’s C-Corp structure led to double taxation, a challenge for investors. Now, the Solana ETF will allocate taxable income and profits directly to shareholders.

This new structure allows investors to pay taxes individually, avoiding the issues of double taxation. Greg King, CEO of REX Financial, emphasized that this shift aligns the Solana ETF with common U.S. ETF models. He added, “This move is a clear improvement for investors and simplifies tax treatment.”

King also highlighted that the Solana ETF continues to provide direct exposure to Solana and staking bonuses. This adjustment positions the fund to appeal to both retail and institutional investors.

Growth and Demand for SOL ETF

The SSK SOL + Staking ETF has seen rapid growth in assets under management (AuM) since its launch. Recently, AuM reached $212.26 million, reflecting strong investor demand. The conversion is expected to attract even more investors seeking exposure to Solana without directly purchasing the cryptocurrency.

Analysts believe the fund’s growth is driven by increasing interest in Solana ETFs. The potential approval of Solana ETFs in the U.S. has further fueled investor confidence. Polymarket data shows that the odds of a Solana ETF being approved in 2025 are now over 99%.

Impact on SOL Price and Market Sentiment

The positive developments surrounding the Solana ETF have contributed to a boost in the price of SOL. The cryptocurrency showed resilience, bouncing back after testing the $208.50 level. Following this, SOL price surged past short-term resistance at $210 before briefly climbing above $211.

The growing demand for Solana ETFs and their expected approval are seen as key factors driving the price movement. As the Solana ETF continues to evolve, its impact on the broader market will likely grow. This shift highlights the growing role of Solana ETFs in attracting investor interest.

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