SEC scrutiny threatens Ethereum and Solana staking ETFs
2-6-2025 – The pursuit of exchange-traded funds (ETFs) tied to staking on Ethereum (ETH) and Solana (SOL), anticipated for a June 2025 launch, has encountered a stumbling block. The U.S. Securities and Exchange Commission (SEC) has raised concerns over the proposed products, casting a shadow over their approval. REX Shares and Osprey Funds, which recently submitted applications to offer staking-based ETFs for these prominent blockchains, face scrutiny from the regulator, particularly regarding the transparency of staking reward mechanisms and the structure of the products. These issues align with the SEC’s broader caution toward staking protocols, reflecting a cautious regulatory stance.
Whale-scale staking reflects strong institutional support for Solana
Yet, Solana’s ecosystem tells a story of resilience and growing confidence. A striking example is a recent whale transaction, where 4 million SOL—valued at approximately $621 million—was staked with the validator HZKopZY. This validator, powered by the latest version of Jump Crypto’s Firedancer client (v0.503.20214), has surged to the 16th rank among Solana’s validators, as noted by a respected analyst on social media. This bold move signals unwavering institutional faith in Solana’s long-term potential, undeterred by the uncertainty surrounding ETF approvals. It underscores a broader trend: investors are doubling down on the network’s fundamentals, betting on its capacity to drive future growth.
Major Stake: 18 hours ago 4m $SOL staked ($621m) into 6ez9w2YkWPHJ Validator version @jump_firedancer v0.503.20214 Validator Id : HZKopZY now #16 https://t.co/8ZbZBdDA0B pic.twitter.com/G6CIvbrwgf
— MartyParty (@martypartymusic) June 1, 2025
Social sentiment surges amid On-Chain momentum
The enthusiasm isn’t confined to on-chain activity. Solana has also captured the spotlight in digital conversations, with social media mentions spiking by over 37,000 in a single day—the highest in a month. This surge in chatter reflects a growing optimism within the crypto community, a sentiment that often serves as a reliable barometer of investor confidence. The convergence of robust staking activity and heightened social engagement suggests a solid foundation for SOL’s price stability, if not a springboard for future gains, despite the regulatory turbulence.
Confidence in Solana persists despite regulatory headwinds
While the SEC’s reservations pose a challenge to the ETF aspirations, they have done little to dampen the momentum within Solana’s ecosystem. Validators are upgrading their systems, major investors are staking significant sums, and the community’s voice is growing louder. Though the path to regulatory approval remains fraught, Solana’s on-chain dynamics paint a picture of quiet confidence, positioning the blockchain as a formidable player in the evolving crypto landscape.
