On Friday, VanEck, asset supervisor and cryptocurrency exchange-traded fund (ETF) issuer, introduced a brand new filing for a spot Solana ETF backed by JitoSOL with the US Securities and Alternate Fee (SEC). This marks a big change from different crypto ETFs as it will be the primary fund to make the most of a liquid staking token.
A New Period For Liquid Staking?
JitoSOL capabilities as a liquid staking token on the Solana blockchain, representing each staked SOL and the rewards related to it. This construction permits customers to stake their SOL by way of the Jito Community whereas retaining the liquidity mandatory for participation in decentralized finance (DeFi) functions.
Consequently, VanEck’s introduction of a brand new spot Solana ETF might present buyers with new alternatives to learn from the anticipated development of the Solana ecosystem.
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This initiative comes on the heels of recent regulatory steering from the SEC concerning liquid staking activities. Below the administration of President Donald Trump, there was a concerted effort to place america as the worldwide chief in cryptocurrency.
The Securities and Alternate Fee’s latest shift in method displays this imaginative and prescient, because it goals to make clear the regulatory panorama for the broader digital asset market, a big departure below former Chair Gary Gensler.
9 Solana ETF Functions Await SEC Inexperienced Mild
In August of this yr, a coalition of influential organizations, together with Jito Labs, VanEck, Bitwise, the Solana Coverage Institute, and Multicoin Capital Administration, submitted a joint request to the SEC searching for approval for liquid staking in Solana ETF functions.
The letter emphasised the operational benefits that liquid staking can provide for potential Solana ETF issuers, similar to enhanced community safety by way of elevated staking participation, a wider array of funding choices for market individuals, and potential new income streams for ETF suppliers.
With at the least 9 Solana ETF filings presently awaiting SEC approval, it’s clear that curiosity on this space is on the rise. Important progress towards approval was signaled two months in the past when VanEck’s first spot Solana ETF appeared on the Depository Belief & Clearing Company’s web site below the ticker VSOL.
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Importantly, the SEC has additionally signaled that, below particular situations, actions associated to liquid staking could not fall below the definition of securities as outlined by the Securities Act of 1933 and the Securities Alternate Act of 1934.
Paul S. Atkins, the newly appointed SEC Chairman, underscored the company’s dedication to offering clear regulatory steering for modern monetary practices. He described the employees assertion on liquid staking as an important measure for outlining which crypto asset actions lie exterior the SEC’s jurisdiction.
On Friday, VanEck’s new spot Solana ETF utility brought on SOL’s worth to surge by double digits, recording a ten% enhance within the 24-hour interval that introduced the cryptocurrency near the $200 threshold.
Featured picture from DALL-E, chart from TradingView.com