Solana News Today: Institutional Investors Turn to Staking ETFs as Regulations Shift

VanEck has filed with the U.S. Securities and Exchange Commission (SEC) to launch an ETF focused on JitoSOL, a liquid staking token on the Solana blockchain, according to a Form S-1 filed on August 22 by VanEck Digital Assets. The proposed fund aims to provide investors with exposure to staked SOL tokens and their associated staking rewards through traditional brokerage platforms. This marks one of the first ETF applications specifically designed to wrap a liquid staking token, rather than a base cryptocurrency asset [1].

The JitoSOL token functions as a liquid staking token (LST), representing ownership of staked Solana (SOL) and the accumulated staking rewards. Investors can engage in secondary transactions with the token, offering a more flexible alternative to traditional staking mechanisms, where early withdrawal can be limited or subject to penalties. Thomas Uhm, Chief Business Officer of the Jito Foundation, highlighted that U.S. institutions have already integrated crypto ETFs into their portfolios and are now showing increasing interest in staking-related products [2].

The regulatory environment has shifted in favor of virtual asset innovation, particularly under the Trump administration. The SEC, which previously challenged staking activities as securities transactions, has recently taken a more accommodating stance. In May, the SEC clarified that direct staking and delegation of verification authority do not typically qualify as investment contracts under current regulations. This shift has enabled firms like VanEck to explore new product structures in the staking space [2].

The development aligns with broader institutional interest in crypto and staking products. For example, BlackRock’s IBIT has emerged as one of the fastest-growing ETFs in history. Similarly, the first Solana staking ETF, SSK, was launched on the CBOE, managed by Rex Shares and Ospreys Fund. These developments suggest a maturing market where staking ETFs are gaining traction alongside traditional crypto ETFs [2].

JitoSOL is issued by Jito Labs, a non-profit organization supporting the Jito and Solana ecosystems. Uhm, who previously worked for 22 years as a trader at Jane Street, emphasized the need for ETF managers to balance liquidity management and investor returns. Unlike traditional staking, LSTs offer multiple pathways to convert holdings into underlying assets or cash, enhancing flexibility for institutional investors [2].

As the crypto industry continues to evolve, DeFi innovations such as perpetual futures and multi-asset lending are reshaping market structures. Uhm expressed optimism about the Korean market’s influence on virtual asset adoption, noting that Korean builders and traders have historically contributed to the global crypto landscape [2].

Source:

[1] VanEck Files for JitoSOL ETF: Liquid Staking on the Solana Blockchain (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)