A Quite Unexpected Twist for Cryptocurrencies: Something That Was Unthinkable a Year Ago May Now Be Possible

Global investment management firm VanEck has taken a significant step into the cryptocurrency staking funds space by filing a new exchange-traded fund (ETF) application with the U.S. Securities and Exchange Commission (SEC).

According to the filing filed 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 maintain the value of their staked assets while still earning on-chain rewards. This allows investors to generate returns and use their assets in DeFi applications without locking them up.

The Jito Foundation announced in a statement that the fund will be “the first spot Solana ETF backed by 100% liquid staking tokens.” Unlike traditional staking, liquid staking provides a tradable token in exchange for the staked asset, offering investors both liquidity and returns.

Alongside the filing, 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 previously met with the SEC's Crypto Task Force to discuss how staking and re-staking mechanisms could be implemented in ETFs.

The SEC previously clarified that proof-of-stake-based staking activities would not be considered securities transactions and that certain liquid staking activities would not qualify as securities. The Jito Foundation stated that following this guidance, the “compliance process for LST-based ETFs and ETPs has become clear and applicable.”

Crypto journalist Eleanor Terrett commented on the development: “Look at how far we’ve come in just one year; Wall Street giants like VanEck and regulators like the SEC are now considering liquid staking token-backed ETFs.”

*This is not investment advice.