A Surprising Move for Solana—and Maybe Altcoins
The SEC’s approval of a Solana spot ETF caught a lot of people off guard. Not just because it happened, but because of what’s bundled with it: staking rewards. Analyst Simeon Koch called it a “historic turning point” for altcoins, and he might be right.
This isn’t just another ETF. The REX-Osprey Solana and Staking ETF, set to launch July 2, 2025, lets investors gain exposure to SOL’s price movements while also earning staking income—all without touching a crypto exchange. For traditional investors, that’s a big deal. No wallets, no technical hurdles. Just brokerage access to something that used to require jumping through hoops.
Why the C-Corp Structure Matters
What makes this ETF different is how it’s structured. It’s set up as a C-Corporation, which sidesteps a lot of the tax and regulatory headaches tied to staking. Normally, staking rewards in ETFs are messy—either they’re not allowed, or they trigger complications. Here, the rewards flow straight to investors without extra SEC approvals.
Koch thinks this could ripple out to other cryptocurrencies, especially Ethereum. Right now, Ethereum ETFs don’t offer staking, partly because of longer lockup periods and technical risks. But if the C-Corp model works for Solana, it might open doors. The SEC’s quiet nod to this structure suggests they’re not against staking in principle—just the way it’s been handled before.
Market Reaction? Surprisingly Muted
You’d think news like this would send Solana soaring, but the market barely blinked. SOL and other altcoins have been stuck in a summer slump, with trading volumes thin and prices hovering near lows. Bitcoin, meanwhile, is still flirting with its all-time highs.
Koch isn’t worried, though. He points out that Bitcoin and Ethereum ETFs saw delayed reactions too. Ethereum, for example, outperformed Bitcoin earlier this year despite a slow start. If history repeats, the Solana ETF could be the spark for a broader altcoin rally—just not right away.
What Comes Next
If this ETF gains traction, it could shift how altcoins are perceived. Less “wild west speculation,” more institutional compatibility. Projects with strong infrastructure and scalability might get a closer look. And if the SEC stays quiet on similar proposals—say, for Avalanche or Litecoin—the floodgates could open.
Koch’s take? “This isn’t just about Solana. It’s about altcoins finding a seat at the traditional finance table.” Whether that happens depends on Wall Street’s appetite. But for the first time, it feels possible.
*Not investment advice, obviously. Just something to watch.
