VanEck Enters Cryptocurrency Staking Funds with New ETF Application
Global investment management firm VanEck has made a notable move into the cryptocurrency staking funds sector by submitting a new exchange-traded fund (ETF) application to the U.S. Securities and Exchange Commission (SEC).
The filing, submitted today, introduces the proposed VanEck JitoSOL ETF, which seeks to track the price of the liquid staking token (LST) JitoSOL.
JitoSOL is a tokenized variant of staked SOL, enabling users to retain the value of their staked assets while simultaneously earning on-chain rewards. This setup allows investors to achieve returns and utilize their assets in DeFi applications without having to lock them up.
The Jito Foundation revealed in a statement that this fund will be “the first spot Solana ETF backed by 100% liquid staking tokens.” In contrast to traditional staking, liquid staking offers a tradable token in exchange for the staked asset, providing investors with both liquidity and returns.
Alongside the filing, the Jito Foundation shared that it has been engaged in extensive discussions with the SEC and other regulatory authorities in recent months. Jito Labs CEO Lucas Bruder and Legal Director Rebecca Rettig previously met with the SEC’s Crypto Task Force to explore how staking and re-staking mechanisms could find their place in ETFs.
The SEC has previously clarified that proof-of-stake-based staking activities do not constitute securities transactions, and that certain liquid staking activities are ineligible as securities. According to the Jito Foundation, in light of this guidance, the “compliance process for LST-based ETFs and ETPs has become clear and applicable.”
Crypto journalist Eleanor Terrett remarked on the situation: “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!
