VanEck’s Bold New ETF Proposal: Will JitoSOL Shake Up the Staking World?

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Well, well, well, if it isn’t the ever-daring global asset manager VanEck, who, like a cat with a new toy, has decided to file an S-1 registration statement with the US Securities and Exchange Commission (SEC). This time, they’re coming at us with the VanEck JitoSOL exchange-traded fund (ETF). Hold on to your hats, dear reader, because according to the filing, this fund is going to hold only JitoSOL – a liquid staking token from Jito Network. No other shenanigans. No distractions. Just pure JitoSOL.

Now, you may be wondering, “Why on earth should I care about JitoSOL?” A fair question, and one I shall answer with all the flair of a well-dressed debutante at her first ball. This filing is the first attempt to register a US exchange-traded fund backed by a liquid staking token. Yes, you read that right – a liquid staking token, which could give investors a shot at Solana’s (SOL) staking yields, and they don’t even need to break a sweat. A potentially regulated product that could turn the whole staking game on its head. But, of course, let’s not get ahead of ourselves. The SEC might have a thing or two to say about it.

JitoSOL is the grand prize here, representing Solana (SOL) that’s been locked away with validators while handing out transferable tokens that accrue rewards. Think of it as the staking equivalent of a piggy bank that actually gives you interest, and you can take your coins out whenever you please. Welcome to the magic of liquid staking, my friend. 🪄✨

Now, you might say, “But, Wodehouse, isn’t this just another digital asset fund in VanEck’s ever-growing collection?” And to that, I say, absolutely, but this one could ruffle the SEC’s feathers. You see, VanEck is no stranger to pushing boundaries. In early 2024, they launched their spot Bitcoin ETF, and earlier that same year, they launched an Ether ETF. But unlike those, this JitoSOL ETF might just give the SEC a headache, and not the good kind, mind you.

SEC Continues Its Stubborn Debate on Staking

As luck would have it, the move from VanEck comes on the heels of a letter co-authored by Jito Labs and the Jito Foundation, with a little help from friends like Bitwise, Multicoin Capital, and the Solana Policy Institute. They sent this letter to the SEC on July 31, politely suggesting that liquid staking tokens like JitoSOL ought to be allowed in exchange-traded products. Naturally, the SEC has yet to make up its mind, because who needs clarity when you can have ambiguity?

The letter made some interesting points, though. They argued that liquid staking tokens are a safer, more efficient way to integrate staking into exchange-traded products (ETPs). Instead of having all your eggs in one basket, you get to spread your stake across validators, reducing the risk and complexity of the whole operation. After all, why not add efficiency to your portfolio while you’re at it?

The SEC, not one to be rushed, issued guidance on this whole matter in two parts. First, in May, the SEC said that solo and delegated staking generally don’t fall under securities laws because rewards are based on protocol rather than some third-party meddling. Then, in August, they extended that view to liquid staking, describing tokens like JitoSOL as evidence of ownership, rather than investment contracts – provided, of course, that the provider isn’t being too controlling. 🧐

But hold your applause, for the SEC’s comments are only staff statements, not binding rules. Meaning, the Commission could change their minds faster than you can say “Regulatory uncertainty.” So, let’s not get too comfy just yet.

For a little bit of history, the SEC has had its fair share of ups and downs when it comes to staking. Back in February 2023, they charged Kraken for offering an unregistered staking program, resulting in a hefty $30 million settlement and the shuttering of its US staking service. Later that year, they took a swing at Coinbase over similar allegations, but that case was dismissed in February 2025. So, yeah, they’re still figuring it all out.

But let’s not get bogged down in the weeds of enforcement actions. The SEC has also influenced staking policy through its ETF approval process. Remember when they approved the spot Ether ETFs in May 2024? Well, they made sure that all references to staking were scrubbed from the proposal before granting approval. So, the Ether ETFs launched last year, including those from VanEck, only hold ETH and don’t dabble in staking. A missed opportunity? Perhaps. But the SEC knows best, right? 😏

And that, my dear reader, is the saga of the VanEck JitoSOL ETF. A story filled with twists, turns, and perhaps, just perhaps, a little too much regulatory red tape. But that’s what makes this all so thrilling, isn’t it? 📈💼

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2025-08-22 23:33