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In brief
- VanEck filed on Friday a proposal for an exchange-traded fund tracking the price of JitoSOL.
- The U.S. SEC earlier this month determined that liquid-staking tokens are not securities, clearing a path to putting them in ETF wrappers.
- The filing comes as investor demand for staked crypto ETFs increases.
VanEck submitted an application to the U.S. Securities Exchange Commission for a JitoSOL exchange-traded fund, as investor interest in staked crypto ETFs continues to expand.
The ETF will track the price of JitoSOL, a kind of Solana liquid-staking token, or a tokenized asset that serves as a stand-in for an asset that has already been staked on a network.
Staking refers to the process of locking up cryptocurrencies on a blockchain to secure the network in exchange for rewards, usually in the form of tokens.
“With staff guidance now on record, the compliance runway for LST-based ETFs/ETPs is clear and actionable, and has resulted in the first ETF [composed] of LSTs,” the Jito Foundation said Friday in a blog post.
The JitoSOL fund marks the first proposed spot Solana ETF to receive 100% backing from a liquid-staking token, according to the Jito Foundation’s statement.
The filing comes as regulators have loosened their restrictions on the cryptocurrency, particularly when it comes to the classification of staking-based activities. In May and August, the SEC ruled that both protocol and liquid staking do not qualify as securities transactions—a determination that enables their inclusion in ETFs.
“That clarity opens a compliant path for ETF sponsors to use LSTs,” a Jito Foundation representative said in the post.
The Securities Commission also voted in July to green-light in-kind creations and redemptions for crypto ETFs.
This latest application from VanEck also comes just a few weeks after issuer REX-Osprey integrated staking rewards into its Solana ETF via a partnership with JitoSOL.
Solana was trading at $199 as of writing time, up nearly 10% in the past 24 hours, according to data provider CoinGecko.
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