VanEck has filed a proposal with the U.S. Securities Exchange Commission (SEC) to create an exchange-traded fund (ETF) that will track the value of JitoSOL, a liquid-staked token associated with Solana. This move comes in light of the SEC’s recent rulings clarifying that liquid staking does not constitute a securities transaction, paving the way for such tokens to be included in ETF products.
The JitoSOL ETF aims to capitalize on the growing interest among investors for staked crypto ETFs. Liquid staking allows users to lock their cryptocurrencies on a blockchain to secure the network and earn rewards, which are usually distributed in the form of additional tokens. VanEck’s fund is positioned to maximize yields for investors since it is designed to earn staking rewards while keeping fees at a minimum.
According to a blog post from the Jito Foundation, the application marks a significant step as it represents the first proposed spot ETF for Solana, fully backed by a liquid-staked token. The foundation noted that with the SEC’s guidance now publicly available, the compliance process for ETFs based on liquid staking tokens is “clear and actionable.”
Additional regulatory decisions have recently favored the inclusion of liquid staking in ETF structures, enabling issuers like VanEck to structure their funds using these assets. The framework allows for in-kind creations and redemptions, enhancing flexibility for ETF sponsors.
This filing is particularly timely as the SEC has made strides in easing the rules surrounding cryptocurrency, leading to broader acceptance of staking-related activities within the financial framework. Just weeks prior to VanEck’s filing, another issuer, REX-Osprey, integrated staking rewards into its own Solana ETF through a collaboration with Jito.
As for market activity, Solana has seen a price increase, trading at around $199, reflecting an approximately 10% rise within a 24-hour period.
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