Global funding management firm VanEck has taken a huge step into the cryptocurrency staking funds dwelling by submitting a original alternate-traded fund (ETF) application with the U.S. Securities and Replace Charge (SEC).
Essentially primarily based totally on the submitting filed at the moment time, the proposed VanEck JitoSOL ETF targets to trace the cost of the liquid staking token (LST) JitoSOL.
JitoSOL is a tokenized model of staked SOL, allowing users to withhold the cost of their staked sources whereas easy incomes on-chain rewards. This permits investors to generate returns and expend their sources in DeFi functions without locking them up.
The Jito Foundation supplied in an announcement that the fund will likely be “the principle space Solana ETF backed by 100% liquid staking tokens.” Unlike venerable staking, liquid staking supplies a tradable token in alternate for the staked asset, offering investors both liquidity and returns.
Alongside the submitting, the Jito Foundation supplied that it has been in intensive discussions with the SEC and other authorities in fresh months. Jito Labs CEO Lucas Bruder and Lawful Director Rebecca Rettig previously met with the SEC’s Crypto Task Drive to focus on how staking and re-staking mechanisms would be implemented in ETFs.
The SEC previously clarified that proof-of-stake-primarily primarily based totally staking activities would no longer be regarded as securities transactions and that distinct liquid staking activities would no longer qualify as securities. The Jito Foundation said that following this steering, the “compliance activity for LST-primarily primarily based totally ETFs and ETPs has change into distinct and acceptable.”
Crypto journalist Eleanor Terrett commented on the advance: “Look for at how some distance we’ve come in barely one one year; Wall Avenue giants fancy VanEck and regulators fancy the SEC are actually interested by liquid staking token-backed ETFs.”
*Here is no longer funding advice.
