Crypto ETF Summer Is Here: SEC Approves Grayscale and Rex-Osprey Solana ETFs

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The long-anticipated wave of crypto exchange-traded funds (ETFs) is gaining momentum as the U.S. Securities and Exchange Commission (SEC) takes decisive steps toward broader market integration. With recent approvals for Grayscale’s Digital Large Cap Trust conversion and the potential launch of Rex-Osprey’s Solana staking ETF, 2025 could mark a turning point for institutional crypto adoption.

This regulatory shift signals more than isolated green lights—it suggests the emergence of a structured pathway for token-based ETFs, potentially reshaping how investors access digital assets through traditional financial channels.

SEC Greenlights Grayscale’s Digital Large Cap ETF Conversion

On Tuesday, the SEC approved Grayscale Investments’ application to convert its Digital Large Cap Fund into a spot exchange-traded fund. This move aligns with growing institutional demand for diversified crypto exposure beyond Bitcoin and Ethereum.

The newly approved ETF will maintain its existing portfolio composition, which includes major cryptocurrencies such as:

Since its inception in 2018, the fund has grown to manage nearly $755 million in assets under management (AuM), reflecting sustained investor confidence despite market volatility.

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This approval strengthens the foundation for future multi-asset crypto ETFs and fuels optimism that similar products featuring altcoins like Solana, XRP, and Avalanche may soon follow.

Rex-Osprey Set to Launch First-Ever Solana Staking ETF

In parallel developments, Rex-Osprey is preparing to launch the Rex-Osprey SOL + Staking ETF (SSK)—the first U.S.-based ETF offering both spot exposure to Solana and on-chain staking rewards.

Although the SEC has not issued a formal approval notice, a recent regulatory filing indicates the commission has no further comments on the proposal—a procedural step widely interpreted as a de facto green light. The product is expected to begin trading as early as Wednesday.

Unlike traditional yield-bearing instruments, this ETF will incorporate staking rewards directly into the fund’s net asset value (NAV) rather than distributing them as periodic payouts. This approach simplifies tax reporting and enhances transparency for retail and institutional investors alike.

Still, some market participants remain cautious. Bloomberg ETF analyst Eric Balchunas noted on X that the absence of an official approval announcement introduces uncertainty, even if the path forward appears clear.

Rising Approval Odds Signal Broader Market Shift

These developments come amid rising expectations for wider altcoin ETF approvals. Just weeks after boosting their forecast for Bitcoin and Ethereum ETFs, Bloomberg analysts James Seyffart and Eric Balchunas updated their projections again—this time increasing the approval odds for TRX and PENGU ETFs by 50%.

For other major altcoins—including Solana, XRP, Litecoin, SUI, and Avalanche—the analysts maintain a 95% probability of eventual approval under the 19b-4 rule change process.

This confidence stems from observable shifts within the SEC’s approach. Rather than evaluating each application individually, regulators may be moving toward establishing universal listing standards for token-based ETFs—a move that could dramatically accelerate future launches.

Emerging Framework for Token-Based ETF Listings

According to financial commentator Eleanor Terret, the SEC is allegedly developing a standardized eligibility framework that would allow issuers to bypass the lengthy 19b-4 approval process.

“I’m told that if a token meets certain criteria, issuers can skip the 19b-4 process, file an S-1, wait 75 days, and then exchanges can list the product,” Terret wrote in a post on X.

While specific requirements have not been disclosed, likely metrics include:

This streamlined pathway would mirror existing frameworks for equities and commodities, bringing crypto closer to mainstream financial integration.

Core Keywords Driving Market Momentum

As investor interest surges, several key themes dominate the conversation:

These terms reflect both search behavior and evolving market dynamics. Their natural integration into financial discourse underscores growing legitimacy in digital asset investing.

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Frequently Asked Questions (FAQ)

Q: What is a staking-enabled crypto ETF?
A: A staking-enabled ETF provides investors with exposure to a cryptocurrency’s price performance while also earning staking rewards. In the case of Rex-Osprey’s SSK fund, these rewards are reflected in the fund’s net asset value rather than paid out directly.

Q: Why is Grayscale’s Digital Large Cap ETF significant?
A: It offers diversified exposure to top cryptocurrencies beyond Bitcoin, including Ethereum, Solana, and XRP. Its conversion to an ETF format enhances liquidity, transparency, and accessibility for traditional investors.

Q: Does SEC “no comments” mean full approval?
A: While not a formal approval, “no comments” from the SEC on Form 19b-4 filings is typically treated as a final regulatory hurdle cleared. It allows the sponsoring exchange to proceed with listing plans.

Q: Can other altcoins get ETF approval soon?
A: With approval odds estimated at 95% for major altcoins like Solana and XRP, a wave of new ETF launches is expected in late 2025—especially if standardized listing rules are adopted.

Q: How do staking rewards work in an ETF?
A: Instead of receiving tokens directly, investors benefit from increased NAV due to accrued staking yields. This structure avoids complex tax implications associated with regular income distributions.

Q: What happens if a token doesn’t meet the new SEC standards?
A: Tokens failing to meet minimum thresholds for market cap, liquidity, or trading volume may remain ineligible for ETF inclusion unless they improve their metrics or seek alternative listing paths.

The Road Ahead: A New Era for Crypto Investing

With Grayscale’s conversion approved and Rex-Osprey poised to debut America’s first staking-integrated Solana ETF, the stage is set for rapid innovation. The SEC’s apparent pivot toward standardized listing rules could reduce time-to-market for future products and encourage more asset managers to enter the space.

For investors, this means easier access to diversified, regulated crypto exposure—with lower risk and higher transparency than ever before.

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As 2025 unfolds, one thing becomes increasingly clear: the era of crypto ETFs is no longer coming—it’s already here.