The post SOL price spikes on ETF launch with staking – Is $200 in sight or just hype? appeared on BitcoinEthereumNews.com.

Bloomberg’s Balchunas downplayed demand for REX-Osprey SOL staking ETF.  Option traders eyed $140-$190 range, with low expectations of SOL over $200 in the short term.  The much-awaited U.S. Solana [SOL] ETF(exchange-traded fund) with staking, from REX-Osprey, will go live on the 2nd of July.   This would be the first-ever staked crypto-related ETF in the country, and the hype quickly sparked a 5% SOL rally.  The altcoin jumped from $149 to $160, but erased the gains shortly afterwards as analysts downplayed the impact of the debut.  Analyst on SOL ETF: ‘Manage expectations’ Bloomberg’s Eric Balchunas broke down the fund’s structure on X (formerly Twitter). He revealed that the ETF, registered under the Investment Company Act of 1940, will allocate 40% of its holdings via other funds (ETNs) to meet regulatory compliance. However, that’s not the only catch. The fund’s overall fees will increase from 0.75% to 1.23% once tax expenses are factored in.  Balchunas added that the fund’s structure (under the 40 Act) and the underwhelming performance of the recently launched Volatility Shares SOL Futures ETF don’t bode well for the staking product.  “While it is a notable launch, it’s important to manage expectations…Investors tend to prefer ’33 Act 100% spot products if given a choice, although no timeline on when those launching” Source: Eric Balchunas/X Not your usual staking rewards On the staking side, Solana offers about 6-8% annual rewards, and the fund plans to stake at least 40% of its holdings.  However, factoring in fees and staking performance, the rewards could be around 4-6%. Besides, the yield is compounded into the ETF value and not distributed in SOL.  In fact, one user estimated that yield could drop to 1.12% compared to 7% from direct staking, warning that the ETF product would make SOL unpopular.  “Not worth the fanfare, and…

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Filed under: News - @ July 1, 2025 1:26 pm