VanEck Proposes JitoSOL ETF for SEC Approval

VanEck has recently filed for approval of their JitoSOL exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC). This ETF is designed to track the liquid staking token JitoSOL, which represents staked SOL assets that users can trade while earning rewards. The Jito Foundation claims that this would mark the first spot Solana ETF wholly backed by a liquid staking token. Liquid staking allows users to maintain accessibility to the value of their staked assets, differentiating it from traditional staking methods. Alongside the ETF proposal, the Jito Foundation also highlighted their proactive discussions with the SEC and relevant stakeholders. In recent months, representatives from Jito have met with the SEC's Crypto Task Force to discuss staking and its implications for ETFs. The SEC has recently aimed to clarify its stance on staking. In May, they indicated that proof-of-stake activities aren't classified as securities transactions, specifically addressing the nature of certain liquid staking operations. The Jito Foundation expressed optimism, stating that with the SEC's staff guidance now on record, the path for LST-based ETFs is clear. They believe that encapsulating JitoSOL in a regulated format is a vital step towards connecting blockchain technologies with institutional investors. This ETF proposal comes on the heels of REX-Osprey's Solana staking ETF, which integrated staking rewards from JitoSOL. The SEC is currently evaluating multiple crypto ETF proposals during a time of more favorable regulatory conditions. Recently, the SEC has permitted in-kind creation and redemption orders for crypto ETFs and is allowing applications for spot bitcoin and Ethereum ETFs. The Biden administration's approval of these ETFs followed a significant court ruling favoring Grayscale. Please note that this article is intended for informational purposes only and should not be interpreted as legal or financial advice.