TLDR
- Crypto ETFs continue to heat up.
- BlackRock’s ETHA hit $10 billion in AUM.
- The Rex-Osprey Solana ETF, SSK, is now offering staking rewards, all of which are being passed on to investors.
If you had asked us two years ago if we’d be making regular reports on crypto ETFs, we would have laughed. Now, it’s a part of our regular news reporting. This week, we’ve got BlackRock flexing its massive market muscles while a smaller player is quietly revolutionizing how ETFs work.
Two major stories dominated the headlines: BlackRock’s Ethereum ETF just crossed the $10 billion milestone, and REX-Osprey launched something that’s never been done before in the U.S — a crypto ETF that actually shares staking rewards with investors via liquid restaking. Let’s get after it.
BlackRock’s Ethereum ETF Reaches $10 Billion Milestone
BlackRock’s iShares Ethereum ETF (ETHA) hit $10 billion in assets this week, and the timeline is pretty wild when you think about it. The fund reached this milestone in just 251 trading days since launching on June 24, 2024. To put that in perspective, their Bitcoin ETF hit the same mark in only 34 days, but $10 billion is still $10 billion.
The momentum behind Ethereum ETFs has been seriously impressive lately. On Friday alone, all US spot Ethereum ETFs combined pulled in $452.72 million in net inflows. That’s real money from real investors betting on Ethereum’s future, marking the 16th consecutive trading day of inflows.
The Flows Are Flowin’
BlackRock’s ETHA dominated the action, scooping up $440.10 million of that Friday inflow. Meanwhile, Bitwise’s ETHW grabbed $9.95 million, and Fidelity’s FETH added $7.30 million. The only sour note? Grayscale’s ETHE continues bleeding money, losing another $23.49 million as investors apparently prefer the newer, cheaper options.
Here’s the thing that should get your attention: the cumulative net inflow across all US spot Ether ETFs has reached $9.33 billion since launch. These funds now represent 4.64% of Ethereum’s entire market cap, which tells you just how much institutional and retail money is flowing into crypto through these traditional investment vehicles.
The 16-day winning streak started on July 2, and since then, net inflows have more than doubled from $4.25 billion to $9.33 billion. The peak day saw $726.74 million in inflows on July 16, and multiple sessions have topped $300 million.
REX-Osprey Launches First Staking Rewards ETF
While BlackRock was making headlines with big numbers, REX-Osprey was quietly making history with something completely new. Their Solana + Staking ETF became the first crypto ETF in the US to offer staking rewards directly to shareholders.
Here’s how it works: The fund partners with JitoSOL, a tokenized version of staked Solana that allows you to continue trading while earning rewards via a receipt token. We’ve discussed liquid staking and liquid restaking a few times here. Go read up on it. It’s exciting stuff.
Why This Matters for Retail Investors
The big deal here is that REX Osprey isn’t keeping any of the staking rewards for themselves. They’re passing 100% of those rewards through to shareholders. That’s pretty rare in the fund world, where management companies usually take their cut of everything. That being said, the fund does have a pretty steep management fee…
Since launching on July 2, the REX-Osprey Solana + Staking ETF has generated over $222 million in trading volume and manages more than $100 million in assets. Not bad for a brand-new concept.
Greg King, CEO, explained it well: “Now by integrating the capability for liquid staking through JitoSOL, we’re enhancing liquidity while continuing to deliver native Solana rewards within a US ETF structure.”
What These Developments Mean for New Crypto Investors
If you’re just getting started with crypto, these ETF developments are actually great news. Here’s why:
Easier Access: ETFs let you buy crypto exposure through your regular brokerage account. No need to figure out crypto wallets, exchanges, or worry about losing your private keys.
Professional Management: These funds handle all the technical aspects while you gain price exposure. BlackRock and other major firms bring institutional-grade security and compliance.
New Income Opportunities: The REX-Osprey fund demonstrates that crypto ETFs can evolve beyond merely tracking prices. Earning staking rewards through an ETF is simpler than staking cryptocurrency yourself.
Market Validation: When $10 billion flows into Ethereum ETFs and major institutions launch innovative products, it signals that crypto is becoming a legitimate asset class.
The Bigger Picture for Crypto ETFs
These developments highlight two important trends. First, institutional money continues pouring into crypto through ETFs, with Ethereum funds showing particularly strong momentum. The 16-day inflow streak suggests sustained investor interest, not just a temporary spike.
Second, innovation in crypto ETFs is just getting started. REX-Osprey’s staking rewards model could be the first of many new features that make crypto investing more attractive and accessible through traditional investment vehicles.
For investors betting on DeFi, staking, and smart contract adoption, these ETF innovations provide easier ways to participate without needing deep technical knowledge. Remember, even though ETFs make crypto investing easier, you’re still dealing with a volatile asset class. Invest cautiously and wisely.
The crypto ETF space is evolving rapidly, with new products and features launching regularly. Stay informed about developments like staking rewards and institutional adoption — they’re shaping the future of how everyday investors access cryptocurrency markets.
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