Solana News Today: Institutional Stakeholders Push SEC for Liquid Staking in Solana ETPs

Jito Labs, VanEck, Bitwise, and other institutional stakeholders have submitted a formal letter to the U.S. Securities and Exchange Commission (SEC) advocating for the inclusion of liquid staking in potential Solana-based exchange-traded products (ETPs). Liquid staking allows investors to stake their tokens while retaining liquidity through derivative tokens—enabling trading, lending, or use in decentralized finance applications without locking assets. The letter highlights how this mechanism could enhance capital efficiency and reduce the need for costly rebalancing in ETP structures [1].

The initiative underscores growing institutional confidence in Solana’s blockchain infrastructure and aligns with broader efforts to bring regulated investment vehicles to the crypto market. According to the letter, the use of liquid staked tokens (LSTs) could provide ETP issuers with greater flexibility during large inflows or outflows, minimizing tracking errors and operational costs [2]. Jito Labs and its partners further argue that the adoption of liquid staking in ETPs could lead to increased network security, more investment options, and additional revenue for fund providers [3].

The push for regulatory clarity also coincides with VanEck’s re-submission of its Solana ETF application to the SEC, signaling heightened institutional interest in regulated exposure to digital assets [4]. Other industry players, such as asset management firm Caladan, are also integrating liquid staking tokens—like stETH—into institutional-grade platforms, including over-the-counter trading systems [5]. This trend reflects a broader shift toward institutional adoption of liquid staking infrastructure.

While the benefits of liquid staking are emphasized in the letter, the risks associated with the process—such as smart contract vulnerabilities, depegging, or slashing events—are not explicitly addressed. The SEC has yet to issue formal guidance on liquid staking, though it has previously indicated that traditional staking may not constitute a securities offering if directly tied to a consensus mechanism [1].

The regulatory environment remains uncertain, with the SEC unlikely to make a decision on the Solana ETF proposals before October 2025 [6]. Meanwhile, Solana’s price dropped 6% in the week ending July 31, 2025, with over $1.2 billion in short positions signaling bearish market sentiment [6]. The Spent Output Profit Ratio (SOPR) has fallen to nearly 1.00, suggesting that traders are breaking even and may be losing confidence in the asset.

The campaign for liquid staking in ETPs mirrors similar efforts in the Ethereum ecosystem, where issuers of Ether-based ETFs are also seeking approval for staking capabilities. Nasdaq, for instance, has filed an application with the SEC to permit staking in BlackRock’s iShares Ether ETF [5]. Analysts have expressed optimism that such features could attract institutional capital to crypto funds, provided they receive regulatory approval [5].

As the industry continues to push for innovation within regulated frameworks, the outcome of the SEC’s review could determine the future of ETPs in the digital asset space. The inclusion of liquid staking in Solana-based products may not only enhance their appeal to institutional investors but also set a precedent for similar mechanisms across other blockchain networks [1].

Source:

[1] Cointelegraph – [https://cointelegraph.com/news/jito-labs-vaneck-sec-liquid-staking-solana](https://cointelegraph.com/news/jito-labs-vaneck-sec-liquid-staking-solana)

[2] 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] CryptoRank – [https://cryptorank.io/news/feed/f0f65-jito-labs-request-sec-to-approve-staking](https://cryptorank.io/news/feed/f0f65-jito-labs-request-sec-to-approve-staking)

[4] 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/)

[5] 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] CoinCentral – [https://coincentral.com/solana-sol-price-weekly-drop-continues-as-traders-pile-into-short-positions/](https://coincentral.com/solana-sol-price-weekly-drop-continues-as-traders-pile-into-short-positions/)