Push for liquid staking in Solana ETFs gains institutional support
- Jito Labs, VanEck, Bitwise, and others are appealing to the SEC for liquid staking approval for Solana exchange-traded products (ETPs).
- Liquid staking allows tokens to be allocated to validators while still being tradable as derivative tokens.
- The appeal argues that liquid staking could enhance capital efficiency and reduce operational costs for ETP issuers.
- Nine Solana (SOL) ETPs are currently pending a decision from the SEC regarding this matter.
- Risks associated with liquid staking include smart contract vulnerabilities and potential depegging events.
The push for liquid staking in Solana ETPs is part of a broader trend, as Ether (ETH) fund issuers also seek similar approvals to attract institutional capital. The SEC has yet to provide formal guidance on the matter.
At least nine Solana ETPs await SEC decisions on liquid staking, which proponents believe could improve operational efficiency and investor options. (Source)
