VanEck Files for JitoSOL ETF: A New Frontier for Solana Staking

VanEck has submitted an application to the U.S. Securities and Exchange Commission (SEC) for an exchange-traded fund (ETF) that tracks the price of JitoSOL, a liquid-staked Solana token. This move highlights the increasing interest in crypto ETFs, especially those offering exposure to staked assets.

What is JitoSOL?

JitoSOL represents Solana that has been staked on the Jito network. Staking involves locking up cryptocurrencies to secure a blockchain network and earning rewards in return. Liquid staking allows users to maintain liquidity by receiving a token representing their staked assets, which can be traded or used in other DeFi applications.

Regulatory Clarity Paves the Way

Recent SEC rulings have clarified the regulatory status of staking-based activities. The SEC determined that both protocol and liquid staking do not inherently qualify as securities transactions. This clarity has opened a compliant path for ETF sponsors to incorporate liquid-staked tokens (LSTs) into their offerings.

The SEC's decision to allow in-kind creations and redemptions for crypto ETFs further supports the viability of these products.

Key Takeaways

• First Mover Advantage: The JitoSOL fund could be the first spot Solana ETF fully backed by a liquid-staking token.
• Increased Accessibility: ETFs provide broader access to crypto investments for both retail and institutional investors.
• Growing Acceptance of Staking: The ETF signals a growing acceptance of staking as a legitimate and valuable component of the crypto ecosystem.

This application follows REX-Osprey's recent integration of staking rewards into its Solana ETF through a partnership with JitoSOL. Solana is currently trading around $199, reflecting positive market sentiment.