Solana News Today: Institutional Players Push Liquid Staking in Solana ETPs Amid SEC Review

Institutional players are intensifying their advocacy for the inclusion of liquid staking in Solana-based exchange-traded products (ETPs), with Jito Labs, VanEck, Bitwise, and other stakeholders submitting a joint letter to the U.S. Securities and Exchange Commission (SEC). The letter argues that liquid staking tokens (LSTs) could enhance capital efficiency and reduce operational costs for ETP issuers by enabling more flexible rebalancing strategies [1]. The proposed mechanism allows tokens to be staked while retaining liquidity through derivative tokens, which can be traded, used in decentralized finance (DeFi), or loaned. However, the process carries additional risks, including smart contract vulnerabilities and depegging events, which are not explicitly addressed in the letter [4].

VanEck recently resubmitted its application for a spot Solana ETF, reflecting the growing institutional interest in regulated crypto exposure and structured staking mechanisms. Bitwise has similarly submitted a proposal that integrates liquid staking, reinforcing the industry consensus on the benefits of this approach [3]. At least nine Solana (SOL) ETPs are currently awaiting SEC approval, highlighting the competitive landscape and regulatory scrutiny surrounding the space [1].

The SEC has not yet provided formal guidance on liquid staking, although it has indicated that traditional staking may not constitute a securities offering if directly tied to a consensus process [4]. This regulatory ambiguity remains a key challenge for broader adoption of LSTs in institutional portfolios. However, proponents argue that liquid staking could introduce greater flexibility and resilience to crypto investment vehicles, particularly in response to large redemptions or market volatility [1].

A parallel movement is unfolding in the Ethereum space, with issuers of Ether (ETH) funds also seeking approval for staking features. Nasdaq, for instance, filed an application on July 17 to allow staking in BlackRock’s iShares Ether ETF, following a similar move for Grayscale in February. Analysts view the inclusion of staking in ether ETFs as potentially transformative for institutional participation in crypto markets [5].

The momentum around staking is further supported by broader industry developments. Platforms like Robinhood have expanded their staking offerings, with the platform now holding $750 million in crypto assets, underscoring the demand for yield-generating crypto products [6]. Institutional over-the-counter (OTC) desks, including Caladan, are also integrating liquid staking tokens like stETH as collateral, signaling a growing acceptance of these instruments within traditional finance [7].

The push for liquid staking in Solana ETFs aligns with the evolving landscape of tokenized assets and structured staking solutions. If the SEC provides regulatory clarity, it could facilitate the launch of a new class of products that offer both yield and liquidity, potentially attracting a broader investor base to the Solana ecosystem. This development would not only benefit Solana but also set a precedent for similar innovations in other blockchain networks.

Sources:

[1] Jito Labs, VanEck, and others co-wrote a letter to the SEC (Cointelegraph, [https://cointelegraph.com/news/jito-labs-vaneck-sec-liquid-staking-solana](https://cointelegraph.com/news/jito-labs-vaneck-sec-liquid-staking-solana))

[2] VanEck resubmits spot Solana ETF application (AInvest, [https://www.ainvest.com/news/solana-news-today-vaneck-resubmits-spot-solana-etf-application-sec-institutional-support-grows-2508/](https://www.ainvest.com/news/solana-news-today-vaneck-resubmits-spot-solana-etf-application-sec-institutional-support-grows-2508/))

[3] Bitwise’s proposal incorporates liquid-staking (AInvest, [https://www.ainvest.com/news/solana-news-today-vaneck-resubmits-spot-solana-etf-application-sec-rising-institutional-demand-2508/](https://www.ainvest.com/news/solana-news-today-vaneck-resubmits-spot-solana-etf-application-sec-rising-institutional-demand-2508/))

[4] SEC has not issued guidance on liquid staking (advfn.com, [https://mx.advfn.com/bolsa-de-valores/COIN/SOLUSD/crypto-news/96539337/push-for-liquid-staking-in-solana-etfs-gains-insti](https://mx.advfn.com/bolsa-de-valores/COIN/SOLUSD/crypto-news/96539337/push-for-liquid-staking-in-solana-etfs-gains-insti))

[5] Analysts see staking in ether ETFs as transformative (TipRanks, [https://www.tipranks.com/news/the-fly/crypto-currents-corporate-digital-asset-treasuries-top-100b-thefly](https://www.tipranks.com/news/the-fly/crypto-currents-corporate-digital-asset-treasuries-top-100b-thefly))

[6] Robinhood’s staking expansion and holdings (The, [https://www.theblock.co/post/365081/robinhoods-crypto-volumes-slip-analysts-upside-staking-blockchain-push](https://www.theblock.co/post/365081/robinhoods-crypto-volumes-slip-analysts-upside-staking-blockchain-push))

[7] Caladan integrates stETH as collateral (Crowdfund Insider, [https://www.crowdfundinsider.com/2025/07/247036-ethereum-liquid-staking-caladan-integrates-steth-as-institutional-otc-collateral/](https://www.crowdfundinsider.com/2025/07/247036-ethereum-liquid-staking-caladan-integrates-steth-as-institutional-otc-collateral/))