VanEck, a leading asset manager in the financial sector, has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a proposed exchange-traded fund (ETF) that will hold JitoSOL, a liquid staking token on the Solana blockchain. According to the Form S-1 filing, the JitoSOL ETF aims to track the price of JitoSOL, which represents ownership of staked SOL tokens along with accumulated staking rewards. This structure will allow investors to gain exposure to both Solana (SOL) and the associated staking yields through conventional brokerage accounts [1].
The filing aligns with a shift in regulatory interpretations regarding liquid staking activities. The SEC has recently clarified that certain liquid staking activities are not classified as securities transactions, thereby not requiring registration [1]. This development has opened the door for asset managers like VanEck to explore innovative products tied to blockchain staking mechanisms.
This proposed ETF marks one of the first attempts to wrap a liquid staking token (LST) into an ETF format rather than directly listing the base cryptocurrency. JitoSOL, in particular, is a liquidity staking token that users receive after depositing Solana in the Jito protocol, a Solana staking platform. The token allows for secondary market transactions and serves as a contract certificate [2]. This innovation is seen as a bridge between traditional financial instruments and blockchain-based yield-generating assets.
The broader trend of integrating virtual asset ETFs into institutional portfolios is gaining momentum. Thomas Uhm, Chief Business Officer of the Jito Foundation, noted that U.S. institutions have already adopted crypto ETFs, with products like BlackRock’s IBIT becoming the fastest-growing ETF in history [2]. This institutional adoption is supported by recent legislative actions in the U.S., including the passage of the Genius Act, the Clarity Act, and the Anti-CBDC Act, which aim to provide regulatory clarity and foster innovation in the crypto space.
The proposed JitoSOL ETF is expected to appeal to investors seeking to diversify their portfolios with exposure to both crypto assets and staking returns. JitoSOL’s structure offers greater flexibility compared to traditional staking, where returns are often locked until a specific unstaking period. In the case of LSTs like JitoSOL, investors can convert the tokens into underlying assets or cash through various mechanisms, offering enhanced liquidity [2]. This flexibility could make the ETF particularly attractive in a market where liquidity is a key concern for both retail and institutional investors.
As the crypto market continues to evolve, regulatory clarity and product innovation are playing pivotal roles in mainstream adoption. The filing of the JitoSOL ETF by VanEck represents a significant step in this direction, reflecting both the growing confidence in crypto markets and the maturation of financial infrastructure surrounding blockchain-based assets [1].
Source:
[1] VanEck files for JitoSOL ETF after SEC exempts certain … (https://cryptobriefing.com/vaneck-files-jitosol-etf-liquid-staking/)
[2] “In the era of staking ETFs, liquidity staking tokens (LSTs) … (https://www.mk.co.kr/en/stock/11397958)
