REX-Osprey has revealed a significant modification to its exchange-traded fund (ETF) based on Solana. The conversion took effect on September 1 and aims to make the fund more tax efficient for investors.
REX-Osprey’s Solana ETF Conversion Simplifies Tax Structure and Expands Investor Appeal
According to the official statement, the SSK SOL + Staking ETF has moved from a C-Corporation to a regulated investment company structure. The decision means the Solana ETF will no longer face federal or state tax at the fund level.
Rather, the Solana ETF will allocate taxable income and profits to shareholders. Then, they can pay their taxes as appropriate individually. This removes the problem of double taxation that affected the ETF when it was structured as a C-Corp.
Greg King, CEO of REX Financial, said the shift marks a clear improvement for investors. He explained that moving into the new structure brings the ETF in line with the model used by most exchange-traded funds in the United States. Another problem that King pointed out concerns investors as they will still benefit from direct exposure to Solana and staking bonuses.
The conversion is also an indicator of a push to attract more retail and institutional investors. The simplification of the tax treatment for the Solana fund can also help attract more investors who want exposure to Solana without the hassles of actually purchasing the crypto asset.
Rising AUM and ETF Hopes Fuel Solana Price Momentum
The asset under management for the Solana fund has been increasing sharply since launch. As shown on the Rexshares website, assets under management recently reached $212,260,750.00.
This shows strong investor demand within weeks of launch. Analysts say that expectations around potential U.S. approval odds for broader Solana ETFs have also contributed to fresh interest in the asset class.
Recently, many Solana ETFs amended their SEC filings, an indication that they may be approved soon. The deadline for a decision by the SEC for some Solana ETF proposals is next month.
The increase in AuM and expectations of Solana ETFs approval has positively impacted SOL price. This is evident in the trading sessions during the previous day.
SOL value was resilient following the test of the $208.50 level in early trading. The sharp recovery followed and drove the price past the short-term resistance level around the $210 zone and continued its bullish movement.
The Solana token had surged above $211 briefly during the overnight trading session before it fell. This conversion and market optimism have fueled Solana price movement over the short-term. High inflows and the rise in assets under management boosted investor confidence in the fund and SOL price action.
Paul
Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others.
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Source: https://coingape.com/rex-osprey-converts-solana-etf-ssk-into-new-fund-structure/