Ethereum News Today: Jito VanEck Bitwise Push Solana Liquid Staking in ETPs

Support for integrating liquid staking into Solana-based exchange-traded products (ETPs) is gaining traction, led by infrastructure provider Jito Labs and asset managers VanEck and Bitwise. The group, backed by entities such as the Solana Policy Institute and Multicoin Capital, has submitted a letter to the U.S. Securities and Exchange Commission (SEC) advocating for the adoption of liquid staking in these products [1]. The initiative mirrors parallel efforts in the Ethereum ecosystem, where major firms like BlackRock and Grayscale are also seeking approval to include staking in their Ethereum ETFs [2].

Liquid staking allows investors to stake their tokens while retaining liquidity through derivative tokens, known as liquid staked tokens (LSTs). These tokens can be traded, used in DeFi protocols, or loaned out, enhancing capital efficiency. Proponents argue that this mechanism can reduce operational inefficiencies in ETPs, such as forced rebalancing during large inflows or redemptions, which often lead to tracking errors and higher costs. In-kind transfers via LSTs are presented as a solution that offers greater flexibility to authorized participants [1].

Despite these benefits, the letter to the SEC does not address significant risks associated with liquid staking, such as smart contract vulnerabilities, potential depegging of LSTs, and slashing, where staked funds can be forfeited due to validator misconduct. The SEC has yet to issue formal guidance on liquid staking, though it has indicated that traditional staking tied to blockchain consensus may not be considered a securities offering [1].

The momentum around staking in crypto ETPs has intensified in 2025, with Ethereum also under consideration. BlackRock, for example, recently had its proposal to add staking to its iShares Ethereum ETF acknowledged by Nasdaq, signaling potential regulatory progress [2]. Analysts suggest that enabling staking could significantly boost institutional interest and capital inflows into Ethereum ETFs, enhancing their competitiveness with Bitcoin ETFs.

According to Robbie Mitchnick, BlackRock’s head of digital assets, the firm’s Ethereum ETF remains incomplete without staking functionality. If approved, staking could increase yield and potentially transform the market. Markus Thielen of 10x Research noted that adding staking to spot Ethereum ETFs could attract a surge of institutional investment, especially if it boosts yields by around 3%, complementing the current 7% annualized return from arbitrage opportunities between spot ETFs and futures [2].

With 2–3x leverage, institutions could see annual returns of 20–30%, making staking a compelling feature for capital allocation strategies. Nate Geraci of NovaDius Wealth Management echoed this, stating that staking is likely to become a regulatory priority in the near term. Ryan McMillin of Merkle Tree Capital emphasized that yield is a critical factor for institutions such as pension funds, which prioritize consistent income and lower volatility over speculative gains [2].

Ethereum ETFs offering a 3–5% yield, combined with diversification benefits from Bitcoin, are expected to become increasingly attractive as institutional-grade investment options. Hank Huang of Kronos Research added that a compliant framework for on-chain yield generation could drive higher liquidity and valuations in the Ethereum ecosystem. An ETF that seamlessly packages staking rewards with easy access and exit mechanisms could set a new benchmark for mainstream crypto investment products [2].

Source: [1] Push for Solana Liquid Staking in ETPs Gains Momentum

(https://coinpaper.com/10303/push-for-solana-liquid-staking-in-et-ps-gains-momentum)

[2] Staking Could Supercharge Ether ETFs