On Friday, VanEck, asset supervisor and cryptocurrency exchange-traded fund (ETF) issuer, introduced a brand new submitting for a spot Solana ETF backed by JitoSOL with the US Securities and Exchange Commission (SEC). This marks a big change from different crypto ETFs as it will be the primary fund to make the most of a liquid staking token.
A New Era For Liquid Staking?
JitoSOL features as a liquid staking token on the Solana blockchain, representing each staked SOL and the rewards related to it. This construction permits customers to stake their SOL by the Jito Network whereas retaining the liquidity essential for participation in decentralized finance (DeFi) purposes.
Consequently, VanEck’s introduction of a brand new spot Solana ETF might present buyers with new alternatives to learn from the anticipated development of the Solana ecosystem.
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This initiative comes on the heels of latest regulatory steerage from the SEC concerning liquid staking actions. Under the administration of President Donald Trump, there was a concerted effort to place the United States as the worldwide chief in cryptocurrency.
The Securities and Exchange Commission’s current shift in strategy displays this imaginative and prescient, because it goals to make clear the regulatory panorama for the broader digital asset market, a big departure beneath former Chair Gary Gensler.
Nine Solana ETF Applications Await SEC Green Light
In August of this yr, a coalition of influential organizations, together with Jito Labs, VanEck, Bitwise, the Solana Policy Institute, and Multicoin Capital Management, submitted a joint request to the SEC searching for approval for liquid staking in Solana ETF purposes.
The letter emphasised the operational benefits that liquid staking can provide for potential Solana ETF issuers, comparable to enhanced community safety by elevated staking participation, a wider array of funding choices for market members, and potential new income streams for ETF suppliers.
With not less than 9 Solana ETF filings at present awaiting SEC approval, it’s clear that curiosity on this space is on the rise. Significant progress towards approval was signaled two months in the past when VanEck’s first spot Solana ETF appeared on the Depository Trust & Clearing Corporation’s web site beneath the ticker VSOL.
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Importantly, the SEC has additionally signaled that, beneath particular circumstances, actions associated to liquid staking could not fall beneath 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 company’s dedication to offering clear regulatory steerage for revolutionary monetary practices. He described the workers assertion on liquid staking as a vital measure for outlining which crypto asset actions lie outdoors the SEC’s jurisdiction.
On Friday, VanEck’s new spot Solana ETF software triggered SOL’s value to surge by double digits, recording a ten% improve within the 24-hour interval that introduced the cryptocurrency near the $200 threshold.
Featured picture from DALL-E, chart from TradingView.com
