REX Osprey Solana (SOL) exchange-traded fund (ETF) recorded zero buying and selling exercise on 4 of six buying and selling days via August 8, in response to Farside Buyers information.
Buying and selling underneath ticker SSK, the fund posted no flows on Aug. 1, Aug. 4, Aug. 5, and Aug. 7, with minimal $6.4 million in exercise on Aug. 8 and $2.7 million outflows on Aug. 6.
REX Osprey’s fund is the primary US-listed Solana ETF to combine native staking mechanisms. The product operates outdoors customary SEC-registered spot ETF frameworks, delivering SOL publicity via oblique automobiles somewhat than direct crypto holdings.
Institutional hesitation
CoinShares movement information confirmed Solana merchandise attracted $874 million in year-to-date inflows, staying behind Ethereum (ETH) and XRP amongst main cap altcoins regardless of its place because the fourth-largest cryptocurrency by market capitalization.
The buying and selling sample may mirror broader institutional hesitation towards Solana-focused funding merchandise in comparison with Bitcoin (BTC) and Ethereum alternate options.
Nansen senior analysis analyst Jake Kennis attributed the disparity to institutional portfolio allocation methods. He defined in a observe:
“ETH is seeing loads of new exercise as establishments had been doubtless underweight ETH relative to BTC. Solana has been largely within the backseat for this new wave of consideration, however SOL ETFs would doubtless decide up if establishments need to additionally diversify away from BTC and ETH.”
Structural complexity creates adoption obstacles
The REX Osprey fund’s design incorporates staking mechanisms and offshore ETF allocations that differentiate it from conventional spot cryptocurrency merchandise.
Stabolut founder and CEO Eneko Knörr recognized these options as adoption obstacles somewhat than demand deficiencies.
Knörr stated:
“SSK’s quiet tape appears to be like extra like a model and distribution problem than a pure demand drawback. Its design isn’t a easy ‘spot SOL in a wrapper’—the fund stakes SOL and may allocate a portion into different SOL ETFs/ETPs, many offshore, which provides complexity that some consumers draw back from.”
The fund fees a 0.75% administration charge, positioning it on the increased finish of cryptocurrency ETF expense ratios. Conventional spot Bitcoin and Ethereum ETFs from main issuers sometimes carry charges between 0.15% and 0.25%.
Kennis, from Nansen, famous that the charge construction creates a cost-benefit evaluation for institutional traders weighing direct cryptocurrency publicity in opposition to ETF comfort.
He referenced Solana’s roughly 7% annual staking rewards:
“The staking part looks as if a serious function given the ‘passive’ yield being left on the desk.”
Market positioning and future outlook
The absence of main monetary establishments like BlackRock and Constancy within the Solana ETF house contributes to restricted market penetration.
REX Shares operates as a smaller ETF issuer with out the distribution networks and model recognition of Wall Avenue’s largest asset managers.
Knörr argued:
“Early buying and selling will doubtless stay lumpy till greater manufacturers enter the house. Construction, complexity, and restricted shelf house are holding it again—curiosity in Solana publicity itself doesn’t seem like the problem.”
As of Aug. 11, the US Securities and Trade Fee (SEC) remains to be contemplating the approval of Solana ETFs underneath the extra tax-friendly 1933 Act.
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