Solana stake ETF "SSK" performs well upon listing, adopting an innovative structure to bypass traditional regulation.

On July 3, the first Solana stake ETF in the United States was officially listed on the Chicago Options Exchange, with first-day performance exceeding market expectations. This ETF not only tracks the market price of Solana (SOL) but also provides investors with native Solana staking rewards. The first-day trading volume reached $33 million, with inflows of $12 million, surpassing the earlier launched Solana futures ETF and XRP futures ETF.

Compared to traditional cryptocurrency ETFs, this ETF offers innovative features - variable staking reward monthly dividends, with a current dividend yield of 7.3%. An ETF analyst commented: "This is a healthy trading start," noting that the trading volume reached $8 million within the first 20 minutes of listing.

The ETF aims to meet the needs of various investors, including retail investors seeking exposure to cryptocurrencies, crypto-native investors supporting blockchain innovation, financial advisors looking for compliant blockchain income avenues, and institutional investors requiring ETF transparency.

It is noteworthy that this ETF adopts the "C corporation" registration form and chooses to register under the Investment Company Act of 1940, rather than the Securities Act of 1933. This structure allows it to bypass the traditional ETF approval process, achieving a rapid listing. However, this structure also brings some challenges, especially in terms of taxation. Since staking rewards are considered ordinary income, the fund internally needs to pay corporate income tax, and investors also have to bear dividend tax and capital gains tax, resulting in a higher overall tax burden.

Unlike existing spot Bitcoin and Ethereum ETFs, this ETF falls under a different regulatory framework. This means that a qualified custodian is required to hold the underlying assets. Currently, the only bank authorized by federal regulators to both custody and stake digital assets assumes this role.

Although the SEC has shown some hesitation in allowing C corporations to bypass traditional approval processes, it ultimately approved the application for this ETF. This may provide a reference structure for future cryptocurrency asset ETFs, but it could also face more regulatory scrutiny.

Market views indicate that the SEC is not trying to completely block staking, but rather needs a framework that can handle earnings, taxes, custody, and compliance in a way that traditional finance understands. Currently, several companies are competing for the opportunity to launch a Solana spot ETF, and analysts expect these funds may be approved within two to four months. Additionally, there are at least 60 other cryptocurrency ETF proposals waiting for SEC review and potential approval.