REX-Osprey Solana Staking ETF Enjoys Record Inflows as Institutional Demand Builds

Institutional players are rushing to take positions in Solana-based investment vehicles, with the market’s only spot $SOL ETF reaching new all-time highs in AUM.

Surging interest in REX-Osprey’s Solana Staking ETF, $SSK, could be due to TradFi’s new obsession with DATs (Digital Asset Treasuries).

Meanwhile, the SEC has gifted $SSK more time as the face of Solana on Wall Street, delaying its decision on filings from four rival issuers.

REX-Shares’ $SSK Hits $159M AUM

REX-Osprey’s $SSK has enjoyed another historic day in the markets, witnessing new all-time highs in daily trading volume, inflows, and AUM. Wall Street’s first Solana Staking ETF recorded $13M in daily inflows, bringing the fund’s total AUM to $183M.

$SSK’s impressive performance exceeded that of its opening day’s trading on July 2, which saw the fund process $33M in volume and $12M of capital inflows. At the time, Bloomberg Senior ETF Analyst Eric Balchunas remarked that $SSK’s debut was “really strong”, ranking it in the top 1% of ETF launches.

In an exclusive comment to SolanaFloor, a REX-Osprey spokesperson confirmed that the issuer had noticed additional movements, beyond volume alone, that indicate investors are freeing up capital.

"It’s not just the total volume, but large share lots are being cleared suggesting institutional interest is growing. This just started in the last week or so. We’ve had some great calls in states that have currently banned staking rewards. People want access to staking rewards and SSK allows investors to receive them in the form of monthly distributions." - REX-Osprey Spokesperson

Further illustrating growing institutional demand in Solana, CME open interest in $SOL trading also recorded new all-time highs. 

According to CoinGlass data, CME Futures markets witnessed $938.5M in open interest as $SOL retraced after breaking $200 earlier this week.

Are Investors Front-Running Solana DAT Growth?

Renewed demand and trading volume within Wall Street’s only $SOL ETF comes following a frenzy of activity among Digital Asset Treasuries, or DATs. 

With cult figures like Michael Saylor and Tom Lee driving the DAT narrative and pumping billions of dollars into $BTC and $ETH, it’s possible TradFi investors see $SSK as an opportunity to front-run a DAT-driven bid for $SOL.

Currently, the NAV of Solana-based DATs pales in comparison to that of Ethereum. Blockworks data indicates that $SOL-based treasury companies make up a mere 0.6% of total DAT NAV. Meanwhile, the NAV of Ethereum-based DAT’s is 1,744% higher than that of $SOL, despite the legacy L1 chain trailing Solana in network performance, app revenue, usage, and developer activity statistics.

Considering Solana’s growth trajectory, many investors are optimistic that DATs will focus their attention on $SOL. Commentators across 𝕏 are now exceedingly confident in the theory, wishing that the “Solana DAT frontrun be a little bit less obvious”.

SEC Delays Decisions on Four Filings

Fortunately for REX-Osprey, the SEC seems to be in no rush to approve the prospective spot $SOL ETFs from rival issuers. On August 14, the SEC delayed its decision on filings from VanEck, Canary Capital, Bitwise, and 21 Shares. 

The SEC’s delay comes following a recent Cboe filing that proposed all crypto asset ETFs must first demonstrate at least six months of trading activity in futures contracts before being approved. 

Through the use of a clever legal workaround, REX-Osprey secured approval in July due to its hybrid composition, which includes $SOL, 21Shares SOL Staking ETP, and $jitoSOL, a liquid-staking token.

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