The VanEck JitoSOL exchange-traded fund is the first US ETF proposal to be supported by a liquid staking token, and global asset manager VanEck has filed an S-1 registration for it with the US Securities and Exchange Commission (SEC). Investors would be exposed to Solana (SOL) staking rewards through JitoSOL, a token that represents staked SOL with integrated reward accrual and liquidity, if this fund is approved.
Increasing Innovation in Digital Asset ETFs
After successfully launching spot Bitcoin and Ether ETFs earlier in 2024, VanEck is now extending its presence in the cryptocurrency ETF market. The proposed JitoSOL ETF gives regulated investors a new way to access blockchain staking yields, unlike earlier funds that were only able to hold native coins. With the flexibility of a transferable token, JitoSOL allows holders to spread their stake across Solana validators and earn staking rewards.
The SEC’s Changing Position on Staking
The application is made as the SEC’s opinions on staking and its place in securities law are changing. According to recent SEC staff guidance, since rewards are decided by protocol, solo and delegated staking are typically not categorized as securities transactions. With the important disclaimer that evidence-of-ownership tokens are not securities if providers lack discretionary control, additional commentary in August expanded this perspective to include liquid staking tokens like JitoSOL.
As demonstrated by earlier high-profile SEC actions against Coinbase and Kraken over their US staking programs, these interpretations are still subject to change and are not legally binding staff statements. Notably, the SEC mandated that issuers, including VanEck, eliminate any mention of staking activities from their filings when spot Ether ETFs were authorized in 2024.
Industry Assistance and Upcoming Actions
In support of liquid staking tokens in ETF products, Jito Labs, the Jito Foundation, Bitwise, Multicoin Capital, and the Solana Policy Institute jointly wrote an industry letter to the SEC, which was followed by VanEck’s submission. A precedent for incorporating staking rewards into regulated investment vehicles may be established by the JitoSOL ETF approval process.
Investors looking for blockchain-native yield in an exchange-traded format may have new options if the SEC approves VanEck’s JitoSOL ETF. This could also indicate that liquid staking strategies are becoming more widely accepted in the US financial market.
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