VanEck has submitted a groundbreaking proposal to the U.S. Securities and Exchange Commission (SEC) for the launch of the first-ever spot Solana ETF fully backed by liquid staking tokens, specifically JitoSOL. This filing, completed on August 22, 2025, represents a novel approach by integrating a liquid staking token that symbolizes both staked SOL and the accrued staking rewards, aiming to track the price of JitoSOL within the ETF structure. The proposal benefits from the SEC‘s recent clarifications that certain liquid staking activities do not constitute securities transactions, which simplifies regulatory compliance for such investment vehicles. Since February 2025, VanEck has engaged in multiple discussions with the SEC to refine the ETF’s legal framework and operational design, with approval anticipated by October 2025. Although standard spot Solana ETFs enjoy a high likelihood of approval, products based on liquid staking tokens like JitoSOL may encounter additional regulatory scrutiny. Investors should also consider that penalties or slashing on the underlying SOL tokens could impact JitoSOL’s value and thus affect ETF returns due to community-determined slashing. This ETF filing is among the first to leverage the SEC’s updated guidance from its Crypto Task Force, clarifying the regulatory status of proof-of-stake and liquid staking tokens. The inclusion of a technical details scrutiny process in the filing helps address potential concerns around the underlying blockchain architecture and staking mechanisms.
The ETF structure provides investors with a unique opportunity to gain exposure to Solana staking yields and token value through conventional brokerage accounts, enhancing liquidity by allowing daily creations and redemptions. This contrasts with traditional staking, which often involves lock-up periods and less operational flexibility. Investors benefit from earning on-chain staking rewards without needing to liquidate their underlying staked assets, thereby preserving potential long-term capital appreciation alongside yield generation. Furthermore, the ETF wrapper addresses prior complexities in accounting and regulatory ambiguity related to liquid staking tokens, making these investment options more accessible to both institutional and retail participants by enhancing tax clarity and compliance. The detailed tokenomics assessment presented in the proposal ensures a sustainable balance between token supply and demand within the ETF structure.
JitoSOL itself functions as a tokenized representation of staked SOL combined with accumulated rewards, enabling holders to maintain liquidity and deploy assets within decentralized finance ecosystems while continuing to earn staking returns. However, these tokens are subject to risks such as slashing penalties triggered by validator misconduct, which can negatively impact token value and investor returns. By leveraging a decentralized staking mechanism, JitoSOL contributes to the overall security of the Solana network, indirectly benefiting ETF investors. This tokenization bridges blockchain infrastructure with traditional finance, offering a compliant pathway for institutional investors to engage in staking. The proposal’s clear articulation of the economic model and technical specifications underscores its potential as a genuine innovation rather than a recycled concept.
VanEck’s filing marks a significant advancement in integrating liquid staking tokens into regulated financial markets, following closely after REX-Osprey’s recent Solana staking ETF launch, thereby signaling a growing institutional appetite for such products. Liquid staking emerges as a critical decentralized finance solution by removing liquidity and yield from staked assets, and this ETF could elevate Solana’s presence within U.S. crypto capital markets, fostering broader mainstream adoption. Support from key ecosystem stakeholders, including the Solana Foundation and Multicoin Capital, lends further credibility to the initiative, although investors should remain mindful of the novel risks associated with liquid staking token mechanisms. The team and vision review of VanEck’s leadership demonstrates strong commitment and strategic partnerships that enhance the credibility of this innovative ETF proposal.
