VanEck’s New Spot Solana ETF Filing, Leveraging JitoSOL As Backbone

On Friday, VanEck, asset manager and cryptocurrency exchange-traded fund (ETF) issuer, announced a new filing for a spot Solana ETF backed by JitoSOL with the US Securities and Exchange Commission (SEC). This marks a significant change from other crypto ETFs as it would be the first fund to utilize a liquid staking token.

JitoSOL functions as a liquid staking token on the Solana blockchain, representing both staked SOL and the rewards associated with it. This structure allows users to stake their SOL through the Jito Network while retaining the liquidity necessary for participation in decentralized finance (DeFi) applications. 

Consequently, VanEck’s introduction of a new spot Solana ETF could provide investors with new opportunities to benefit from the expected growth of the Solana ecosystem.

This initiative comes on the heels of new regulatory guidance from the SEC regarding liquid staking activities. Under the administration of President Donald Trump, there has been a concerted effort to position the United States as the global leader in cryptocurrency. 

The Securities and Exchange Commission’s recent shift in approach reflects this vision, as it aims to clarify the regulatory landscape for the broader digital asset market, a significant departure under former Chair Gary Gensler.

In August of this year, a coalition of influential organizations, including Jito Labs, VanEck, Bitwise, the Solana Policy Institute, and Multicoin Capital Management, submitted a joint request to the SEC seeking approval for liquid staking in Solana ETF applications. 

The letter emphasized the operational advantages that liquid staking can offer for potential Solana ETF issuers, such as enhanced network security through increased staking participation, a wider array of investment options for market participants, and potential new revenue streams for ETF providers. 

With at least nine Solana ETF filings currently awaiting SEC approval, it’s clear that interest in this area is on the rise. Significant progress toward approval was signaled two months ago when VanEck’s first spot Solana ETF appeared on the Depository Trust & Clearing Corporation’s website under the ticker VSOL.

Importantly, the SEC has also signaled that, under specific conditions, activities related to liquid staking may not fall under the definition of securities as outlined by the Securities Act of 1933 and the Securities Exchange Act of 1934. 

Paul S. Atkins, the newly appointed SEC Chairman, underscored the agency’s commitment to providing clear regulatory guidance for innovative financial practices. He described the staff statement on liquid staking as a crucial measure for defining which crypto asset activities lie outside the SEC’s jurisdiction. 

On Friday, VanEck’s new spot Solana ETF application caused SOL’s price to surge by double digits, recording a 10% increase in the 24-hour period that brought the cryptocurrency close to the $200 threshold.

Featured image from DALL-E, chart from TradingView.com