In a groundbreaking move that could reshape the landscape of cryptocurrency investment, institutional support is rallying behind the push for liquid staking in Solana exchange-traded funds (ETFs). As of today, August 1, 2025, this development is capturing the attention of both investors and regulators alike, with many watching closely to see how it might influence the broader market.
Institutional Interest Peaks
Liquid staking—where investors can earn rewards on their staked tokens while maintaining liquidity—has been a hot topic in the crypto world. The method allows for more flexibility and access to funds, which is particularly appealing to institutional investors who have historically been cautious about tying up capital. “We’re seeing a significant shift,” says Rebecca Lin, a senior analyst at Crypto Insights. “Institutions are recognizing the dual benefits of liquidity and returns, which is driving this momentum toward liquid staking in Solana ETFs.”
While the US Securities and Exchange Commission (SEC) has provided guidance on traditional staking, it has remained notably silent on liquid staking, leaving the industry in a state of flux. This lack of guidance hasn’t deterred big players, though. Major financial institutions are getting involved, seemingly confident that regulatory clarity will eventually follow. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
A New Frontier for Solana
Solana, known for its high throughput and low transaction costs, is rapidly becoming a favorite in the staking arena. The network’s capacity to handle thousands of transactions per second makes it an attractive option for liquid staking. “Solana’s infrastructure is built to accommodate the kind of scalability that liquid staking demands,” explains Andre Torres, a blockchain consultant. “It’s not just about speed; it’s about efficiency and reliability.”
However, the embrace of liquid staking in Solana ETFs isn’t without its challenges. Critics argue that it introduces new risks, including potential vulnerabilities in smart contracts and the possibility of slashing—where a portion of staked assets is forfeited due to network violations. Yet, proponents are quick to highlight the potential for increased market liquidity and the democratization of staking rewards. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Regulatory Landscape: The Waiting Game
The SEC’s current stance—or lack thereof—on liquid staking poses both a hurdle and an opportunity. Without clear guidelines, the path forward is uncertain. But this hasn’t stopped market participants from forging ahead. According to sources close to the matter, several firms are preparing to launch Solana ETFs with liquid staking components, banking on the expectation that regulatory bodies will eventually catch up.
“This is uncharted territory,” notes Jonathan Smith, a regulatory affairs expert. “The SEC’s hesitance is understandable, given the complexity involved. However, the demand from institutional investors might just be the catalyst needed for regulatory evolution.”
The Road Ahead
As the crypto market continues to evolve, the integration of liquid staking in Solana ETFs represents a significant step forward. Yet, questions linger. Will the SEC provide the necessary regulatory framework? Can Solana’s network withstand the increased demand without compromising security? And most importantly, how will this affect the broader crypto ecosystem?
For now, the industry holds its breath, watching closely as this bold new experiment unfolds. One thing is clear: the intersection of traditional finance and innovative blockchain solutions is becoming increasingly dynamic, setting the stage for what could be a pivotal moment in the world of digital assets.
Source
This article is based on: Push for liquid staking in Solana ETFs gains institutional support
Further Reading
Deepen your understanding with these related articles:
- Nasdaq-Listed Upexi Secures $500M Equity Line to Expand Solana Treasury Holdings
- CoinShares Launches Zero-Fee SEI ETP With Staking Yield Across Europe
- Coinbase, JPMorgan Deal Signals Shift in Institutional Posture Towards Crypto: Bernstein
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
