On October 17, 2025, the US Securities and Exchange Commission approved the 21Shares Solana ETF (ticker: VSOL).
For years, the holy grail of crypto investing has been to blend blockchain’s yield-generating potential with the regulatory safety and structure of traditional finance. Now, that line has officially blurred.
It’s the first major crypto fund that not only tracks Solana’s price but also pays investors a 6–7% annual staking yield.
And it’s a moment that marks a new milestone for digital assets (one that Bitcoin itself hasn’t yet reached).
The First US Solana ETF – the First with Yield
The 21Shares Solana ETF will trade on the Cboe BZX Exchange and hold physical SOL tokens in custody through Coinbase, the appointed qualified custodian.
Unlike Bitcoin ETFs that simply mirror price movements, this product allows the underlying assets to be staked on-chain.
That means investors can generate a passive income from Solana’s proof‑of‑stake consensus mechanism.
This is more than a technical distinction: it’s a philosophical shift. The fund’s mechanics pair a traditional ETF wrapper with blockchain-native staking yield.
That means while investors trade it like any other exchange-traded fund through their broker, behind the scenes, the tokens are delegated to validators and earn rewards on the Solana network.
Even after accounting for the ETF’s management fee of 0.30%, the net yield distributed to holders is expected to average between 6 and 7% annually.
That’s paid through adjustments in share value rather than cash distributions.
Why This Latest Solana News Matters to the Crypto Market
To understand how groundbreaking this Solana news is, it helps to look backward.
The SEC has steadfastly resisted any staking features in previous approvals, including Ethereum ETFs, over fears of conflating investment returns with unregistered securities yields.
But the Solana ETF appears to have found a regulatory path forward via broader “generic listing standards” for commodity-based trust shares.
This allows staking when structured as yield derived directly from the protocol’s consensus rewards. In other words, 21Shares didn’t invent staking yield; it institutionalized it.
And that’s a big deal for an industry that’s spent years trying to bridge self-custodied crypto economics with the safety of the ETF wrapper.
What “Staking Yield” Means
In proof‑of‑stake (PoS) systems like Solana, validators secure the network by locking up SOL tokens as collateral. In return, they earn staking rewards.
Annualized yields fluctuate with inflation, validator performance, and overall token supply.
Traditionally, these rewards have been accessible only to crypto-native users comfortable managing private keys and engaging with complex validator tools.
The 21Shares Solana ETF changes that by automating the process for investors.
They earn the same economic yield as direct stakers, minus minimal management cost. And their investment remains fully tradable through traditional brokerage accounts.
Solana News: The Bigger Picture
Solana’s inclusion matters too. The blockchain has matured dramatically despite past network issues.
It now handles up to 75 million transactions a day. Also, it is driving some of the most successful stablecoin and DeFi growth metrics of 2025.
Solana ETF approval cements its position alongside Bitcoin and Ethereum among the institutional crypto trio in the market.
It also shows an evolution in how regulators view digital assets. Instead of passive price-tracking, they’re now permitting products that integrate on-chain reward mechanisms.
That effectively legitimizes crypto’s native economics within regulated markets.
The Next Chapter: Passive Income Meets Passive Investing
21Shares, headquartered in Zurich, was already a pioneer in crypto ETPs across Europe, managing billions in assets through products like its Ethereum Staking ETP and Bitcoin Core ETP.
But this US approval gives it first-mover status in an area that could redefine digital asset exposure for pensions, wealth managers, and retail funds.
Put simply, the Solana ETF turns “staking yield” into a mainstream financial instrument.
Investors can now hold a stake in one of the world’s fastest networks. They can earn an on-chain reward stream, all from within their existing portfolios.
Bitcoin may have paved the road with its spot ETF approvals, but Solana just widened it to include yield.
Whether this becomes the new standard for crypto ETFs or remains a Solana-exclusive advantage, one thing is certain. The line between blockchain and Wall Street just got thinner.
The post The 21Shares Solana ETF Is Crypto’s First Yield-Bearing ETF appeared first on The Coin Republic.
Source: https://www.thecoinrepublic.com/2025/10/22/the-21shares-solana-etf-is-cryptos-first-yield-bearing-etf/
