XRP is facing growing competition in the crypto investment space as Solana’s recently launched staking ETF set a new benchmark with its stellar opening performance.
XRP is facing growing competition in the crypto investment space as Solana’s recently launched staking ETF set a new benchmark with its stellar opening performance. The ETF, known as SSK and operated by REX Shares, recorded exceptional investor interest, leaving notable products linked to XRP and Ethereum futures in its wake.
On its launch day, the SSK staking ETF reported $33 million in total trading volume along with $12 million in capital inflows. According to Eric Balchunas, a seasoned ETF analyst at Bloomberg, this debut ranks within the top 1% of all ETF launches by trading volume. Despite the ETF market being historically dominated by Bitcoin and Ethereum products, Solana’s newcomer product clearly resonated with market participants.
The performance disparity is notable when compared to ETFs centered around XRP and Ethereum. While both continue to hold investor interest, the rapid momentum generated by Solana’s ETF highlights a growing appetite for alternative blockchain projects, specifically those that offer staking returns in a regulated structure.
At the core of SSK’s appeal is its structure under the Investment Company Act of 1940. Unlike spot Bitcoin ETFs, this model mandates that over 40% of the fund’s capital be allocated to foreign Solana-based exchange-traded products (ETPs), ensuring regulatory diversification compliance. This structure not only differentiates it from Bitcoin-focused funds but also aligns with investor interest in staking-based passive income strategies.
Balchunas even suggested that the fund could quickly reach $10 million in assets under management by the end of the same day if this traction continues — a testament to both institutional and retail investor appetite.
Meanwhile, demand for Solana futures on CME has also seen a sharp increase, further demonstrating institutional confidence. Open interest in these contracts climbed 13%, pushing it to a record level of $167 million. The exchange offers two formats for these contracts: the standard representing 500 SOL and a micro version representing 25 SOL — both cash-settled to simplify institutional onboarding.
As interest in staking gains momentum, XRP’s future-focused ETFs have yet to capture similar traction, even as the market exhibits a broader enthusiasm for crypto-integrated financial products. The XRP ecosystem has remained vital amid Ripple’s ongoing development efforts, but the surging adoption of staking ETFs like SSK highlights shifts in investor behavior toward yield-generating mechanisms over simple exposure products.
It’s worth noting that the broader ETF space is still undergoing massive evolution. While BlackRock and others oversee Bitcoin ETFs under the 1933 Act, new-generation products like Solana’s SSK frame their value proposition around yield-bearing assets and innovative compliance structures.
In the larger context, analysts are optimistic about the approval of more spot Solana ETFs. Firms like VanEck and 21Shares await decisions from the SEC, with a high probability (~95%) that approvals could materialize before year’s end. Such moves could reshape the competitive landscape for token-based ETFs, compelling traditional products tied to platforms like XRP and Ethereum to explore new structures or performance-assured offerings.
As regulated exposure to staking grows, XRP investors and Ripple stakeholders may need to adjust strategies to align with evolving investor expectations within this increasingly yield-centric environment.
Related: Expert Advice: Sell XRP If You’re Confused
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Quick Summary
XRP is facing growing competition in the crypto investment space as Solana’s recently launched staking ETF set a new benchmark with its stellar opening performance.
Source
Information sourced from official Ripple publications, institutional market research, regulatory documentation and reputable crypto news outlets.
Author
Ripple Van Winkle is a cryptocurrency analyst and founder of XRP Right Now. He has been active in the crypto space for over 8 years and has generated more than 25 million views across YouTube covering XRP, Ripple and digital asset adoption daily.
Editorial Note
Opinions are the author’s alone and for informational purposes only. This publication does not provide investment advice.
