Ethereum News Today: Solana Liquid Staking Push Gains Support from Major Industry Players

Push for Solana Liquid Staking in ETPs Gains Momentum as Advocates Highlight Benefits

Solana infrastructure provider Jito Labs, along with asset managers VanEck and Bitwise, is leading an initiative to persuade the U.S. Securities and Exchange Commission (SEC) to approve liquid staking for Solana exchange-traded products (ETPs). The group has received support from key stakeholders, including the Solana Policy Institute and Multicoin Capital Management, who have collectively submitted a formal letter to the SEC outlining the potential benefits of integrating liquid staking into these products [1].

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, utilized in decentralized finance (DeFi) applications, or loaned out, enhancing capital efficiency [1]. The proponents argue that liquid staking can help ETP issuers avoid operational inefficiencies such as forced rebalancing during large inflows or redemptions, which can lead to tracking errors and increased costs. By enabling in-kind transfers, LSTs offer greater flexibility for authorized participants, potentially increasing revenue for ETP issuers and expanding investment options for market participants [1].

However, the letter does not address the significant risks associated with liquid staking, including smart contract vulnerabilities, potential depegging of LSTs, and slashing—where a portion of staked funds is forfeited due to validator misconduct [1]. The SEC has yet to issue formal guidance on liquid staking, though it has indicated that traditional staking linked to blockchain consensus mechanisms may not be classified as securities offerings.

The discussion surrounding staking in crypto ETPs intensified in 2025, with Solana being one of several assets under consideration. Ethereum remains a key focus, as issuers like BlackRock and Grayscale are also seeking SEC approval to include staking in their Ether ETFs. On July 17, Nasdaq submitted a proposal to allow staking in the iShares Ethereum ETF, following a similar filing by Grayscale in February [1]. Analysts suggest that enabling staking could significantly boost institutional interest and capital flows into Ethereum ETFs. BlackRock’s head of digital assets, Robbie Mitchnick, noted that the firm’s Ethereum ETF, while performing well, remains incomplete without staking functionality [1].

Markus Thielen, head of research at 10x Research, stated that if the SEC approves staking for spot Ethereum ETFs, it could trigger a substantial influx of institutional investment into Ethereum, potentially rivaling Bitcoin ETFs. Thielen highlighted that staking can increase yield and transform the market [2]. The current arbitrage opportunity between spot Ethereum ETFs and Ethereum futures yields approximately 7% annualized returns. With staking potentially adding another 3% yield, total returns could reach 10% unleveraged. When applying 2–3x leverage, institutions could achieve returns of 20–30% annually [2].

Nate Geraci, president of NovaDius Wealth Management, echoed this sentiment, suggesting that staking will likely become a top priority for regulators, especially following recent ETF-related filings [2]. 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. Ether ETFs offering a 3–5% yield, combined with diversification from Bitcoin, will become increasingly attractive portfolio additions [2].

Hank Huang, CEO of Kronos Research, noted that staking will create a compliant pathway for institutions to earn on-chain yield without managing private keys. He believes combining staking income with asset growth will boost demand, liquidity, and valuations across the Ethereum ecosystem [2]. An ETF that effectively packages staking rewards with seamless access and exits could become 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