VanEck has filed for a new ETF that will be exclusively based on the JitoSOL token, representing staked Solana. This move opens up new opportunities for investors and tests SEC regulations.
Key Features of JitoSOL ETF
According to the filing, the VanEck JitoSOL ETF will be fully backed by the JitoSOL token, which represents a liquid staking token for staked Solana and its accrued rewards. This distinguishes it from traditional crypto ETFs, creating new opportunities for liquidity and asset management.
Regulatory Aspects of the Filing
This step is said to be the result of a multi-month effort by Jito's legal team to engage with SEC staff in aligning the structure of liquid staking tokens with new regulatory frameworks. Jito's Chief Legal Officer, Rebecca Rettig, provided initial insights arguing that JitoSOL operates as decentralized infrastructure rather than a security.
Trends in the Investment Space
VanEck's filing comes just a month after REX-Osprey integrated JitoSOL into its own Solana staking ETF. This highlights the growing competition among institutional investors for access to yield-bearing strategies in the cryptocurrency space, indicating a broader trend in alternative finance.
VanEck's initiative to create a JitoSOL-based ETF is a significant step in the development of liquid staking tokens and could be an important event in the cryptocurrency market.
