SEC approval sought for JitoSOL Solana-based liquid staking token ETF
Summary
A new proposal aims to enable a US exchange to trade shares of a fund holding JitoSOL, marking the first SEC filing for a liquid staking token ETP. This development could significantly impact the cryptocurrency market.
Key Insights
What is JitoSOL and how does it differ from regular Solana staking?
JitoSOL is a liquid staking token (LST) on the Solana blockchain issued by Jito Network. Users stake SOL to receive JitoSOL, which remains tradable and usable in DeFi applications like lending or trading while earning staking rewards plus additional MEV (Maximum Extractable Value) bonuses from efficient transaction organization, unlike traditional staking that locks funds.[2][3]
What is a liquid staking token ETF and why is the JitoSOL ETF filing significant?
A liquid staking token ETF is an exchange-traded fund that holds JitoSOL tokens, allowing investors to gain exposure to Solana staking yields (around 7-8%) through traditional brokerage accounts without directly managing crypto. VanEck's S-1 filing marks the first U.S. SEC filing for an ETF backed by an LST, potentially spreading stakes across validators for diversification and enabling institutional participation in Solana's proof-of-stake network.[1][3]