Solana Staking ETFs: Bridging TradFi with SOL staking

On May 30, 2025, the US Securities and Exchange Commission (SEC) responded with concern to a registration amendment on Ethereum and Solana Staking ETFs from REX Shares and Osprey Funds. These applications for Staking ETFs are trying to use a C corporation structure to bypass traditional investment company rules, raising regulatory concerns. The question is: Why does this matter? Solana Staking ETF approval could be a breakthrough moment, offering institutions a clear, regulated path for their investors to earn staking rewards without needing to navigate the complexities of on-chain participation. 

This article explains how Solana Staking ETFs work, and discusses what their approval could mean for the decentralized finance (DeFi) industry. 

Key Takeaways:

• Solana Staking ETFs offer a regulated and accessible way for institutional and retail investors to gain exposure to SOL price appreciation and earn staking rewards, all without needing to manage wallets or navigate on-chain complexities.

• REX Shares and Osprey Funds are pioneering C corporation–based ETF structures that distribute staking rewards while managing tax liabilities at the fund level. Though the SEC has raised legal concerns about staking within ETFs, these workarounds could expedite approval and set a precedent for future crypto ETFs.

• If approved, Solana Staking ETFs could unlock significant institutional capital, increase network staking participation and potentially drive SOL’s price higher. This would also legitimize staking as a mainstream investment strategy and strengthen Solana’s ecosystem and network security.