Major cryptocurrency firms including Bitwise and VanEck have joined forces to petition the U.S. Securities and Exchange Commission for approval of liquid staking tokens in Solana-focused exchange-traded funds. The coalition, which also includes Jito Labs, the Jito Foundation, the Solana Policy Institute, and Multicoin Capital, submitted a public letter emphasizing how liquid staking tokens could create better investment opportunities in the expanding digital asset market.
Industry Response to ETF Applications
This coordinated effort comes in direct response to multiple Solana ETF applications filed by heavyweight asset managers like Fidelity, Franklin Templeton, Grayscale, and 21Shares. These applications, expected to shape ETF frameworks by June 2025, propose establishing Staked Exchange-Traded Products that would actively generate validator rewards on the Solana network. VanEck specifically highlighted how current liquid staking tokens such as JitoSOL could streamline the staking process for Solana ETFs, representing a notable evolution in digital asset management under regulatory oversight.
If you want a gauge on where we are at in this market;
The Solana ETF just got APPROVED WITH STAKING and the price is up 2,5%. pic.twitter.com/H4zU05vlGg
— Ran Neuner (@cryptomanran) June 30, 2025
Understanding Liquid Staking Technology
Liquid staking tokens serve as digital representations of stake-backed assets within the cryptocurrency ecosystem. When investors stake their Solana tokens through smart contracts connected to public staking pools, they receive LSTs in return. These tokens not only represent the underlying staked assets but also capture any rewards earned during the staking period. The integration of LSTs into Solana ETF structures would enable fund issuers to capture staking yields without the operational complexity of running validators or dealing with extended unbonding timeframes.
This approach allows token holders to support network decentralization while maintaining both liquidity and easy access to their investments. The proposed Solana ETF model eliminates traditional staking challenges by removing the need for users to manage cryptographic keys or endure lengthy redemption periods. Solana-based LSTs like JitoSOL operate on a reward-accumulating basis, where each token’s redemption value increases gradually. A single JitoSOL token might redeem for 1.08 SOL after one year, reflecting the validator rewards earned during that period.
The SEC has already established precedent for staking within U.S. cryptocurrency ETFs through the approval of the REX-Osprey Solana + Staking ETF (SSK), which utilizes JitoSOL as its core staking mechanism. While this fund operates under a different structure than traditional 1933 Act ETPs, Bitwise and VanEck argue that the same fundamental principles should extend to all similar products. They referenced the SEC’s Staking Guidance from May 2025, which determined that both individual and delegated staking activities do not qualify as securities transactions, categorizing them as administrative rather than entrepreneurial activities.
The petitioning firms outlined the economic consequences of excluding staking capabilities from ETF structures in their correspondence. They warned that removing staking opportunities could result in lower investor returns and higher operational expenses. As market demand grows for yield-generating investment products, liquid staking tokens aim to optimize returns while ensuring meaningful investor participation in digital asset ecosystem growth, balancing risk management with reward potential.
Market Implications
The collective push for SEC approval of liquid staking tokens in Solana ETFs reflects a measured approach to expanding cryptocurrency investment products within existing regulatory frameworks. This development may contribute to gradual institutional adoption of more sophisticated crypto investment structures.
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