Global investment management firm VanEck has taken a significant step in the field of cryptocurrency staking funds by submitting a new exchange-traded fund (ETF) application to the U.S. Securities and Exchange Commission (SEC).
According to the application made today, the proposed VanEck JitoSOL ETF aims to track the price of the liquid staking token (LST) JitoSOL.
JitoSOL is a tokenized version of staked SOL, allowing users to continue earning on-chain rewards while preserving the value of their staked assets. Thus, investors can earn yields without locking up their assets and can also use them in DeFi applications.
The Jito Foundation announced that the fund will be the "first spot Solana ETF supported by a 100% liquid staking token." Unlike traditional staking, liquid staking allows for a tradable token to be obtained in exchange for the staked asset, providing investors with both liquidity and yield advantages.
In addition to the application, the Jito Foundation announced that it has been in intensive discussions with the SEC and other authorities in recent months. Jito Labs CEO Lucas Bruder and Legal Director Rebecca Rettig had previously met with the SEC's Crypto Task Force to discuss how staking and re-staking mechanisms could be implemented in ETFs.
The SEC announced in recent months that proof-of-stake based staking activities would not be classified as securities transactions and that some liquid staking activities do not fall under the definition of securities. Following this guidance, the Jito Foundation stated that the "compliance process for LST-based ETFs and ETPs has become clear and actionable."
Crypto journalist Eleanor Terrett commented on the development: "Just look at where we are now in just one year; now Wall Street giants like VanEck and regulators like the SEC are considering liquid staking token-supported ETFs."
Stay tuned for the latest developments.
