Solana makes waves as ETF staking reaches an impressive volume of 33 million USD, ranking in the top 1% of newly launched ETFs.

The appeal of Solana (SOL) to financial institutions is becoming increasingly stronger, as recent data shows significant growth in both staking ETF funds and the Solana CME futures market. This not only reflects strong interest from institutional investors but also opens up many new opportunities for those who want to participate in the Solana ecosystem without directly owning the token.

Impressive growth of Solana ETF

Recently, the REX-Osprey Solana Staking ETF (SSK) had an impressive launch on June 2, attracting $12 million in investment on its first day and generating $33 million in trading volume. This growth has contributed to a 4% increase in the value of SOL over the past 24 hours and is trading near the $155 level at the time of the press release.

SOL 1-Day Price Chart | Source: TradingViewBloomberg ETF analyst Eric Balchunas pointed out that the launch of SSK could be ranked in the top 1% of newly launched ETFs. The trading volume of $33 million for SSK on its first day is an impressive figure, surpassing many futures ETFs of other coins like Solana and XRP, though lower than the spot ETFs of Bitcoin and Ether. However, the success of SSK still demonstrates a strong interest from investors in Solana.

Eric Balchunas also noted that if this growth momentum is maintained, SSK could reach 10 million dollars in assets under management (AUM) by the end of the trading day. This is a positive sign that investors are seeking new opportunities in the Solana space.

Special Structure of the Solana ETF

SSK is the first staking ETF fund of Solana in the US, providing an opportunity for investors to access Solana while still benefiting from staking profits. This fund commits to staking at least half of its assets to provide a stable return for investors.

Unlike Bitcoin ETFs managed by large companies like BlackRock, SSK uses a structure under the Investment Company Act of 1940, where more than 40% of the fund's assets are invested in foreign SOL ETPs to meet diversification rules. This creates a distinction from spot Bitcoin/Ethereum ETFs under the 1933 Act, but the economic exposure to Solana remains equivalent.

Some large companies like VanEck and 21Shares are still waiting for the SEC's approval for spot Solana ETFs, and according to analysts' predictions, there is about a 95% chance that these funds will be approved this year.

Growth of the Solana Futures Market

In addition to the success of ETF funds, Solana futures contracts on CME also witnessed remarkable growth. According to data from Coinglass, the open interest of these futures contracts increased by 13%, reaching $167 million, marking an all-time high. This reflects a significant increase in institutional interest in Solana since the first listing of Solana futures contracts on the CME platform in March of this year.

Source: CoinglassCME provides two types of futures contracts for Solana: one is a standard contract (representing 500 SOL), and a "micro" contract for retail (representing 25 SOL). These contracts are settled in cash instead of actual Solana tokens, allowing institutions to participate in the market without having to directly own the tokens.

The strong increase in open interest for Solana futures contracts and the success of ETF funds have demonstrated the growing appeal of Solana to institutions. Financial products related to Solana not only help institutions increase exposure to this token but also create new investment opportunities. However, the increase in liquidity in these markets also brings significant potential for price volatility in the future. Leveraged positions can cause strong fluctuations, so investors need to be cautious when participating.

Emma