Solana’s value took a notable nosedive on July 1, dropping 7.84% within 24 hours to settle at $145.08, according to CoinDesk Research. This sharp decline comes on the eve of a significant milestone for the Solana ecosystem: the launch of the first U.S.-based SOL staking ETF. The REX-Osprey SOL + Staking ETF, debuting on July 2, 2025, promises unique exposure to Solana’s native token and staking rewards, but the crypto market’s reaction suggests a more cautious outlook. As detailed in our recent article, Rex-Osprey Solana ETF to Debut ‘First-Ever’ US Crypto Fund With Staking, this launch marks a pioneering step in integrating staking into ETF structures.
The Staking ETF: A New Frontier
The REX-Osprey SOL + Staking ETF, trading under the ticker SSK, breaks new ground by combining direct exposure to Solana’s price movements with the added benefit of staking rewards. Unlike traditional crypto ETFs that merely track the asset’s price, this fund allows holders to earn yields through Solana’s proof-of-stake mechanism. With 80% of the ETF’s assets allocated to SOL and half of these actively staked, the fund offers a novel investment opportunity.
“This is a game changer,” asserts crypto analyst Jamie Wu. “Integrating yield generation directly into an ETF structure could redefine how institutional investors approach crypto assets. It’s not just about price appreciation anymore—it’s about generating returns even in sideways markets.”
The ETF is structured under the Investment Company Act of 1940, a move seen as enhancing investor protections and smoothing regulatory paths. This framework is often more appealing to regulators than the 1933 Act, potentially paving the way for broader institutional involvement.
Market Skepticism Amidst Innovation
Despite the promising nature of the ETF, Solana faced broad-based selling pressure leading up to its launch. The broader crypto market, as measured by the CoinDesk 20 Index, dipped a mere 0.24%, indicating that Solana’s slide was more pronounced and possibly driven by unique factors.
According to CoinDesk’s technical analysis, the decline was characterized by a well-defined descending channel with lower highs and lower lows. Notably, the largest volume spike was observed at 06:00 UTC, exceeding 1.57 million units, signaling significant selling activity. Support levels emerged around $146.55 during the 14:00 UTC hour, but the action continued downward, ending the day at $145.08.
Crypto strategist Eliza Tran notes, “The market seems to be adopting a wait-and-see approach. While the ETF could herald a new era for Solana, traders are clearly hesitant to commit ahead of its official debut—perhaps an indication of broader market jitters.” This sentiment echoes the cautious optimism we reported in First Solana ETF to Hit the Market This Week; SOL Price Jumps 5%, where initial enthusiasm was tempered by market volatility.
Historical Context and Future Implications
Historically, the introduction of crypto ETFs has been met with mixed reactions. While they often signal increased legitimacy and can drive institutional interest, the immediate market response isn’t always positive. The anticipation of the REX-Osprey SOL + Staking ETF has parallels with past ETF launches, where initial skepticism gave way to sustained value over time.
Looking ahead, the ETF’s success could inspire other firms like Grayscale, VanEck, and Bitwise, all of whom are pursuing similar SOL ETF applications. Success here could catalyze a wave of innovation in crypto investment products, potentially reshaping the landscape for retail and institutional investors alike.
Yet, questions linger. Will the market’s cautious stance persist, or will we see a rally post-launch? Can the ETF live up to its promise of blending yield generation with price exposure?
As Solana’s community and investors hold their breath, the coming days will be pivotal. The REX-Osprey SOL + Staking ETF might just be the catalyst Solana needs to regain its footing—or it could be another bump on the ever-volatile crypto road. Either way, all eyes are on Solana as it navigates this uncharted territory.
Source
This article is based on: Solana Drops Below $146 Despite Imminent Launch of First U.S.-Based SOL Staking ETF
Further Reading
Deepen your understanding with these related articles:
- First US staking ETF to launch Wednesday, giving investors exposure to Solana
- ‘All systems go’ for Solana staking ETF to launch any moment: Analysts
- Will Solana, XRP, Dogecoin and Other Crypto ETFs Take Off?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
