Solana News Today: Regulators Face Defi Crossroads as VanEck Submits First LST-Backed ETF

VanEck, a global asset management firm, has submitted an S-1 registration with the U.S. Securities and Exchange Commission (SEC) to launch the VanEck JitoSOL ETF, marking the first attempt to offer a U.S. exchange-traded fund backed by a liquid staking token (LST). The proposed fund would track JitoSOL, a token issued by the Jito Network that represents staked Solana (SOL) and its accrued staking rewards. If approved, the ETF would provide institutional and retail investors with a regulated vehicle to access Solana’s staking yields without the technical complexities associated with direct staking [1].

This initiative aligns with broader industry efforts to integrate blockchain-native yield mechanisms into traditional financial products. JitoSOL functions as a technical receipt for staked SOL and accumulated rewards, offering liquidity and eliminating unbonding delays. This allows for daily creation and redemption of fund shares while maintaining exposure to staking yields. The SEC has provided recent guidance suggesting that both protocol staking and liquid staking, under certain conditions, may not implicate securities laws. This regulatory clarity is considered a foundational step toward enabling compliant ETFs based on LSTs [2].

VanEck’s filing follows months of policy outreach with the SEC and collaboration with key stakeholders in the Solana ecosystem, including Jito Network, the Solana Foundation, and Multicoin Capital. A critical milestone occurred in May and August 2025, when SEC staff issued statements clarifying that liquid staking tokens like JitoSOL are not investment contracts, provided they are not subject to discretionary control by the issuer. These non-binding staff statements have created a framework for the development of LST-based ETPs, though they do not carry the force of law and remain subject to reinterpretation [3].

The VanEck JitoSOL ETF represents a strategic move to expand the firm’s digital asset offerings beyond spot Bitcoin and Ether ETFs. Unlike previous products, this fund would not merely track the price of Solana but would also incorporate the income generated through staking. This feature could potentially offset or even exceed the fund’s expense ratio, thereby enhancing long-term returns for investors. The product also aligns with broader industry interest in bringing crypto-native financial instruments into the institutional investment space [2].

Regulatory uncertainty remains a key factor in the potential success of the ETF. While the SEC has demonstrated a more open stance toward crypto innovation, it has also taken enforcement actions against unregistered staking programs in the past. Most notably, in 2023, the agency charged Kraken with offering an unregistered staking service, and in 2024, it sued Coinbase over similar allegations. These enforcement actions indicate that the SEC continues to balance innovation with investor protection and market integrity [3].

The VanEck JitoSOL ETF filing has been welcomed by parts of the crypto industry as a potential milestone in mainstream institutional adoption of decentralized finance (DeFi). If approved, the product could pave the way for additional LST-backed ETPs and help bridge the gap between blockchain infrastructure and institutional capital. However, the final outcome will depend on the SEC’s interpretation of its own guidance and the broader regulatory environment surrounding crypto staking and tokenized assets [1].

Source:

[1] JitoSOL ETF News: VanEck Files to Launch Staked Solana ... (https://www.coindesk.com/markets/2025/08/22/vaneck-aims-to-take-solana-s-liquid-staking-to-tradfi-investors-via-jitosol-etf)

[2] Announcing the S-1 Filing for the VanEck JitoSOL ETF (https://www.jito.network/blog/announcing-the-s-1-filing-for-the-vaneck-jitosol-etf)

[3] VanEck files first US liquid staking ETF with JitoSOL (https://cointelegraph.com/news/vaneck-jitosol-etf-submission-sec)