Solana stake ETF performs brilliantly after launch, innovative structure attracts follow

On July 3, the first Solana stake ETF in the United States was officially listed for trading on the Chicago Options Exchange, with first-day performance exceeding market expectations. This ETF not only tracks the price movement of Solana (SOL) but also provides investors with native staking rewards, managed jointly by two companies.

Compared to traditional cryptocurrency ETFs, this product innovatively offers variable staking rewards monthly dividends, with the current dividend rate at 7.3%. An ETF analyst commented that this is a good trading start, with trading volume reaching $8 million in the first 20 minutes after listing.

Looking back at the performance of other Solana-related ETFs recently, several Solana futures ETFs launched in March had relatively flat trading volumes and subsequent performance on their first day, failing to effectively boost market demand. In contrast, multiple spot Bitcoin ETFs launched in January this year had a total trading volume of up to $4.6 billion on their first day.

The newly launched Solana stake ETF aims to meet the needs of various types of investors, including retail investors seeking exposure to cryptocurrencies, crypto-native investors supporting blockchain innovation, financial advisors requiring compliant investment channels, and institutional investors pursuing ETF transparency.

It is worth noting that the ETF adopts the registration form of a "C corporation," which allows it to bypass the traditional approval process for ETFs and accelerate the listing process. Unlike existing spot Bitcoin and Ethereum ETFs, it is registered under the Investment Company Act of 1940, requiring the underlying assets to be held by a qualified custodian instead of the fund issuer.

However, this structure also faces some challenges, especially in terms of taxation. Since staking rewards are considered ordinary income, the fund is subject to corporate income tax, and investors must bear dividend tax and capital gains tax, resulting in a higher overall tax burden.

Despite this, this innovative model provides a reference for future other cryptocurrency ETFs, but may also face more regulatory scrutiny. Some analysts believe that this structure is more suitable for emerging cryptocurrencies like Solana, rather than mature large assets like Bitcoin.

It is worth mentioning that the price of this ETF may not accurately reflect the price fluctuations of SOL. According to SEC filings, the fund's performance may not fully replicate the performance of the reference asset, as factors such as staking rewards and transaction fees may cause deviations.

During the application process, the ETF experienced some setbacks. At the end of May, regulators requested to postpone the effective date of the registration statement, but ultimately at the end of June, they provided a "no further comments" notice, which was seen as an implicit approval by the industry.

Currently, multiple companies are vying to launch Solana spot ETFs, which are expected to be approved within two to four months. Meanwhile, there are a large number of other cryptocurrency ETF proposals awaiting regulatory review. This indicates that despite facing challenges, the cryptocurrency asset ETF market continues to expand and innovate.