REX-Osprey Converts Solana ETF SSK Into New Fund Structure

TLDR

Table of Contents

REX-Osprey restructured Solana ETF SSK as a regulated investment company, ending fund-level taxation.
The new ETF structure passes income to shareholders, removing the double taxation faced under C-Corp rules.
Solana ETF SSK assets under management surged to $212M following structural change and investor demand.
SOL price rose past $210 after ETF conversion and growing expectations of U.S. Solana ETF approvals.

REX-Osprey has officially converted its Solana ETF (SSK) into a new structure designed to improve tax handling for investors. The move took effect on September 1, aiming to align the fund with the framework used by most U.S.-based ETFs. This development has also been linked to growing interest in Solana ETFs and a noticeable rise in the price of SOL.

SSK Moves From C-Corp to Regulated Investment Company

REX-Osprey announced that the Solana ETF SSK has changed from a C-Corporation to a regulated investment company (RIC). This change removes fund-level federal and state tax, which was a drawback under the previous structure. The taxable income and any gains from the fund will now be passed directly to shareholders, who will report these individually on their tax returns.

This structure simplifies tax reporting and removes the issue of double taxation, where taxes were previously applied both at the fund level and investor level. REX Financial CEO Greg King stated, “This is a structure most U.S. ETFs follow, and it benefits investors.” The update also retains the fund’s exposure to Solana and staking yields, allowing investors to benefit from potential on-chain rewards without holding the token directly.

Improved Structure May Attract More Investors

REX-Osprey expects this tax-efficient model to draw more attention from both retail and institutional investors. It gives access to Solana through a regulated product, removing the need to manage crypto wallets or deal with exchanges. The fund also includes staking rewards, which can increase the total return for investors.

The ETF offers a way to gain Solana exposure while staying within traditional financial channels. For many investors, especially those in retirement or tax-sensitive accounts, this is a more accessible route. The regulated investment company status also opens the door for possible inclusion in more advisory and institutional platforms.

Solana Price Reacts to ETF Growth and Market Optimism

Since the restructuring, the ETF has seen rapid growth in assets under management (AUM). As of this week, the REX-Osprey Solana ETF reported AUM of over $212 million. This level of growth in a short period has drawn attention to the fund and the broader Solana ecosystem.

Market analysts point to increased SEC filings by other Solana ETF issuers as a sign of growing momentum. Some filings have adjusted their language and structure, possibly to meet regulatory expectations. The SEC is expected to issue decisions on multiple Solana ETF proposals next month, which could drive further interest.

The price of SOL has also reacted. After testing $208.50 during early trading, the token recovered and pushed past the $210 level. It briefly reached $211 during the overnight session before easing. The strong inflows into the ETF and investor optimism around potential approvals have supported this move.

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