VanEck has taken a bold step towards marrying the burgeoning world of decentralized finance with traditional investment vehicles. This past Friday, the asset management giant submitted a proposal to the U.S. Securities and Exchange Commission (SEC) to launch a staked Solana (SOL) exchange-traded fund. If this initiative sees the light of day, it could mark a significant milestone by introducing liquid staking assets to the conventional trading floors.
A New Breed of ETF
VanEck’s proposed ETF isn’t your typical stock market fare. Instead of merely tracking Solana’s market price, this ETF would encapsulate the potential income derived from staking. It would hold JitoSOL, a liquid staking token tied to the Solana blockchain. Essentially, JitoSOL serves as a proxy for SOL tokens that have been staked, while also accumulating the rewards those tokens earn. It’s a two-pronged approach: investors could potentially benefit from price appreciation and staking yields, all bundled into one publicly traded product.
This move to integrate yield-bearing crypto assets into traditional financial products isn’t without its hurdles. The SEC, a critical gatekeeper in this process, has been engaged in ongoing dialogues with ETF providers like VanEck. The discussions revolve around the feasibility and regulation of embedding staking components into crypto investment funds, as highlighted in our recent coverage of the SEC’s decisions on crypto ETFs.
Regulatory Hurdles and Hope
SEC Chair Paul Atkins, speaking at a recent industry panel in Jackson Hole, emphasized the need for the Commission to streamline its regulatory processes. “There’s a lot of spring cleaning that needs to be done at the SEC,” Atkins remarked, acknowledging the complexity that currently surrounds crypto-related products. He suggested that the agency’s future rules should embrace flexibility and adaptability to foster innovation, indicating a potentially more welcoming environment for liquid staking ETFs.
VanEck isn’t alone in this venture. Heavyweights like Fidelity, Grayscale, and Franklin Templeton are also eyeing the staked Solana fund market. This convergence of interest underscores a broader trend: traditional finance isn’t just flirting with crypto anymore—it’s beginning to embrace it, albeit cautiously. This trend is further evidenced by initiatives such as the new Solana Launchpad, which bets on traders’ interest in price movements.
Historical Context and Market Trends
The cryptocurrency market has long been a hotbed of innovation, often outpacing regulatory frameworks. Solana, known for its high throughput and low transaction costs, has become a preferred blockchain for developers and investors alike. The idea of ‘staking’—locking up crypto assets to support blockchain operations in return for rewards—has taken off, offering enticing yields that far outstrip those of traditional savings accounts.
VanEck’s initiative is a testament to this evolving landscape. By attempting to create a bridge between decentralized finance and the traditional market, they appear to be wagering that investors are ready for more sophisticated crypto products. But will the SEC, long seen as a cautious overseer, align with this vision?
Looking Ahead
As VanEck awaits the SEC’s decision, the financial world watches closely. If approved, the JitoSOL ETF could pave the way for similar products, potentially altering the investment landscape by providing easier access to blockchain-generated yields. Yet, questions remain. How will these products be received by traditional investors? Can they match the liquidity and security standards expected by these investors?
This foray into liquid staking ETFs is an experiment at the intersection of traditional finance and cutting-edge blockchain technology. The outcome could shape how cryptos are integrated into mainstream portfolios and, perhaps, redefine what it means to invest in the digital age. As we move closer to the end of 2025, the financial community eagerly anticipates the SEC’s verdict, which could either open the floodgates for similar products or reaffirm the cautious stance that has defined its approach thus far.
Source
This article is based on: VanEck Aims to Take Solana’s Liquid Staking to TradFi Investors Via JitoSOL ETF
Further Reading
Deepen your understanding with these related articles:
- Stablecoin Boom Has Made Crypto Ramps ‘Sexier’ M&A Targets, Says VanEck VC
- Stablecoins, Tokenization Put Pressure on Money Market Funds: Bank of America
- Crypto Traders Eye Jackson Hole as Ether, XRP, Solana Drop Sharply in Retreat
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.
