Talk about the first staking ETF product SSK of $SOL

The first Solana stake exchange-traded fund (ETF) in the United States attracted $12 million in inflows by the end of its first trading day.

According to Bloomberg ETF analyst Eric Balchunas,

The REX-Osprey Solana Staking ETF debuted on the Cboe BZX exchange on Wednesday, with a trading volume of $33 million and inflows of $12 million.

It is worth noting that there are significant differences between SSK and traditional ETFs, as traditional ETFs are still awaiting SEC approval.

What are the specific differences between the two?

SSK mainly helps users invest in Solana ( $SOL ) and earn staking rewards, using a legal framework called the 1940 Act.

You can think of it as a full-time butler. This butler (fund manager) is very professional and is under the strictest supervision of the U.S. Securities and Exchange Commission (SEC), reporting daily on what they bought and sold, with extremely high transparency.

The SEC is very comfortable with this model, so it was approved quickly.

It will pay you the interest earned from staking directly in cash every month, just like a salary. Due to the good service and strict regulation, the management fee is very expensive (1.40%), making it the most expensive among ETFs currently.

The traditional concept of a stake ETF adds a "staking income" feature to the existing spot ETF. However, this idea has been put on hold by the SEC, which is using the legal framework of the 1933 Act.

You can think of it as a bank vault, whose main function is to "safeguard" assets (such as gold, Bitcoin, Ethereum), and it does not engage in operational activities itself.

The SEC believes that staking is not just custodial but a form of business activity. It's like your safe suddenly starting to make money on its own.

This goes beyond the original definition of a "safe", and the SEC needs to re-examine the risks and formulate new rules, which is why it has not approved it for a long time. Even if it is approved, it is highly likely that the earned interest will be reinvested (compound interest), or you may also have the option to choose between cash or continued investment.