REX SOL ETF Opens with 33M Volume as DFDV Increases Exposure

Solana made significant inroads with institutional investors this week, headlined by the REX-Osprey Solana + Staking ETF’s successful US trading debut and a $112.5 million capital raise by Defi Development Corp (DFDV). The REX ETF launched under the Investment Company Act of 1940, posting $33 million in first-day trading volume while offering native staking rewards—a first for US-listed crypto ETFs. 

On the same day, DFDV announced an upsized convertible note offering to support additional Solana purchases and a stock repurchase program, marking a bold strategic move that reinforces the blockchain’s growing role in regulated finance.

REX-Osprey’s Solana Staking ETF Makes Waves with $33M Debut as Institutional Crypto Access Expands

The REX-Osprey Solana + Staking ETF launched with a bang on Wednesday, becoming the first spot Solana staking exchange-traded fund (ETF) to trade on a US exchange. According to Bloomberg Senior ETF Analyst Eric Balchunas, the ETF generated around $33 million in trading volume on its first day—a strong showing for a niche digital asset product in its early innings.

By the close of trading, the ETF had accumulated approximately $1 million in assets under management (AUM). Balchunas noted on X (formerly Twitter) that, based on the day’s volume, he expects AUM to balloon to as much as $10 million by the second day, signaling early confidence and demand among investors.

Unlike other crypto ETFs currently awaiting clarity from the US Securities and Exchange Commission (SEC), the REX-Osprey ETF was filed under the Investment Company Act of 1940, a more stringent framework than the simpler 1933 Act used for most spot crypto ETFs. This classification requires a higher level of custodial and investor protections, a move that may help ease regulatory concerns and pave the way for broader adoption.

The ETF’s launch also distinguishes itself by offering native staking rewards. All Solana tokens held within the ETF are staked on-chain, with 100% of the staking yield passed directly to investors in the form of monthly distributions. This feature sets the REX-Osprey Solana + Staking ETF apart from other “staking-lite” products that either simulate yield or offer indirect exposure.

Anchorage Digital, the ETF’s custodian, is the only federally chartered crypto bank approved to custody and stake digital assets. Its role was crucial in meeting the regulatory compliance standards of the 1940 Act.

“Staking is the next chapter in the crypto ETF story,” said Anchorage CEO Nathan McCauley. “This launch marks a major step forward in giving institutions full access to the crypto ecosystem in a regulated package.”

Solana’s Momentum Grows Amid Regulatory Hurdles

Solana’s selection for the ETF marks a continued rise in institutional interest around the Layer 1 blockchain, known for its high transaction speed and low fees. The network’s technical merits, combined with a burgeoning DeFi and NFT ecosystem, have placed SOL among the top-performing altcoins in 2025.

Despite the ETF’s early success, regulatory uncertainty still looms. On the same day of the REX-Osprey launch, the SEC’s Deputy Secretary J. Matthew DeLesDernier notified the New York Stock Exchange that a newly approved Grayscale ETF would be placed under “review,” indicating that the agency is still wrestling with the broader implications of crypto-related fund approvals.

The SEC has not yet issued broad guidance for staking ETFs. As a result, many products remain in limbo, with only those that can navigate the more robust requirements of the 1940 Act making it to market.

The REX-Osprey ETF represents a new phase in the evolution of crypto ETFs—one that blends decentralized finance mechanics like staking with the familiar structure of traditional financial products.

By combining regulated custody, staking yield, and transparency, the ETF appeals to a growing class of institutional and sophisticated retail investors seeking on-chain yield without the operational complexities of self-custody or direct network participation.

If AUM growth continues as projected, and if early success translates into sustained inflows, the REX-Osprey Solana + Staking ETF could serve as a blueprint for future digital asset ETFs—particularly those involving staking mechanisms for tokens like Ethereum, Polkadot, or Cosmos.

The Road Ahead

While the debut of the REX-Osprey Solana ETF may seem like a niche event in the broader ETF universe, it’s emblematic of a larger shift: regulated access to crypto-native yields. As the SEC continues to review and refine its stance, asset managers are likely to push for more clarity and innovation in this space.

For now, the Solana staking ETF stands as a milestone in bringing Web3 functionality into Wall Street infrastructure, offering a glimpse of a future where decentralized protocols and traditional finance coexist under one regulatory roof.

Defi Development Corp Issues $112.5M in Convertible Notes to Double Down on Solana Bet

In related news, Defi Development Corp (Nasdaq: DFDV), a company at the forefront of publicly traded firms embracing crypto-native treasury strategies, has announced a $112.5 million convertible note offering as part of a major capital-raising initiative. The offering, which was upsized from an initial $100 million target, will primarily fund a stock repurchase program and additional purchases of Solana (SOL), the blockchain network at the heart of the company’s operations.

The notes are scheduled to mature in 2030 and will offer investors a 5.5% annual interest rate. They also include an equity conversion option priced at $23.11 per share—representing a roughly 10% premium over DFDV’s closing share price earlier in the week.

Investors have also been granted the right to acquire an additional $25 million in notes before the round closes on July 7, further increasing the potential capital available to the company.

A Strategic Shift Toward Crypto

Formerly known as Janover, a real estate technology firm, Defi Development Corp has reinvented itself by pivoting its business model to focus on the Solana ecosystem. The company now operates validator nodes on the Solana blockchain and continues to accumulate its native token, SOL, which traded at $153.68 at the time of the announcement.

The move follows a growing trend of public companies using debt and equity financing to acquire crypto assets—mirroring the strategy employed by Strategy Corp with its massive Bitcoin treasury. DFDV’s crypto-centric pivot has proven transformative: despite the stock being down 12% in early Wednesday trading and over 60% off its May peak, DFDV shares are still up over 3,500% since the company began accumulating Solana and refocusing its operations.

Of the $112.5 million raised, approximately $75 million is earmarked for a prepaid forward stock purchase agreement currently being negotiated with one of the offering’s initial investors. According to DFDV, this facility will allow the investor to hedge their convertible note exposure through derivative trades and short-selling strategies. This move may mitigate dilution while aligning long-term interests between DFDV and its capital partners.

The remaining capital will be allocated toward general corporate purposes, including an expansion of its Solana holdings. As of now, Solana remains one of the most actively developed blockchains in the space, with DFDV aiming to deepen its strategic exposure to the network beyond simply holding the token.

Previous $5 Billion Equity Deal Sets the Stage

This latest fundraising round comes just weeks after DFDV secured a $5 billion equity line of credit with RK Capital Management. While that facility gives DFDV room to issue shares over time, the convertible note approach provides upfront liquidity and signals strong institutional interest in the company’s direction.

The company’s aggressive financing posture signals a broader shift in how crypto-aligned public firms are leveraging traditional capital markets to bet on decentralized technologies. With Solana-specific ETFs like REX-Osprey’s $SSK now live and more institutional money entering the space, DFDV appears poised to be a major player in bridging crypto finance and Wall Street.

Despite the strategic enthusiasm, markets reacted cautiously. DFDV shares slipped 12% on the news—reflecting concerns around dilution, rising debt obligations, or perhaps broader crypto market sentiment. Nonetheless, long-term bulls point to the company’s staggering growth since its crypto pivot and the increasing institutional attention to the Solana network as reasons for continued optimism.