Nasdaq has filed a proposed rule change to list the VanEck JitoSOL ETF, a groundbreaking fund designed to hold the Solana-based liquid staking token JitoSOL.
This move marks a significant step towards the mainstream adoption of liquid staking tokens, which allow users to stake their tokens to secure a proof-of-stake network while receiving a transferable token that represents both the staked assets and accrued rewards.
How JitoSOL Works
According to Brian Smith, president of the Jito Foundation, if the ETF is approved, staking rewards will not be distributed separately but will be reflected in the fund’s net asset value. This means that each JitoSOL token held by the trust will represent the underlying deposited SOL along with any staking yield accrued on the Solana network.
JitoSOL, created by the Jito Network, is a liquid staking token backed by SOL deposited into a staking pool on the Solana network. It allows holders to earn staking rewards through a transferable token without the need to directly run validators or manage on-chain staking.
Nasdaq’s Proposal and SEC Review
The exchange submitted the proposal under Nasdaq Rule 5711(d), which governs commodity-based trust shares. The proposal seeks approval to list and trade shares of a trust that would hold JitoSOL directly. The filing cites the SEC’s prior approval orders for spot Bitcoin (BTC) and spot Ether (ETH) ETPs, arguing that the proposal meets the necessary fraud, manipulation, and surveillance standards.
The trust will value its shares using the MarketVector JitoSol VWAP Close Index, which is calculated from pricing data contributed by multiple trading platforms. The trust will permit both cash and in-kind creations and redemptions, providing flexibility for investors.
Comparing JitoSOL to SOL
The filing claims that JitoSOL is economically comparable to SOL, citing correlation data. It argues that an appropriately structured liquid staking token can be treated as analogous to the underlying asset for purposes of the generic listing standards approved by the SEC in September.
Under the SEC’s review process, the agency has 45 days from the Federal Register publication to approve or disapprove the proposal, which can be extended to 90 days. This timeline underscores the cautious approach the SEC takes with novel financial instruments, particularly those involving cryptocurrency.
Current Landscape of Staking ETFs
While the VanEck JitoSOL ETF has reached the SEC’s exchange review stage, no liquid staking token ETF of this type is currently trading in the United States. However, there are existing funds that provide regulated exposure to staking economics. For example, the REX-Osprey Solana + Staking ETF (SSK) and the REX-Osprey ETH + Staking ETF (ESK) offer spot price exposure alongside staking rewards.
Grayscale has also expanded staking across its exchange-traded lineup, adding staking exposure to the Grayscale Ethereum Mini Trust ETF and the Grayscale Ethereum Trust ETF (ETHE). The company has enabled staking for the Grayscale Solana Trust (GSOL), which is seeking regulatory approval to uplist as an ETP.
Regulatory Considerations
The SEC’s Division of Corporation Finance has previously stated that certain protocol staking activities generally do not involve the offer or sale of securities under federal law. However, these statements are not formal rulemaking and do not automatically approve specific products. In Europe, 21Shares launched a Jito-staked Solana exchange-traded product in January, providing listed exposure to SOL with staking integrated into the structure.
Jito’s total value locked (TVL) stands at around $1.1 billion, down from a peak of over $3.0 billion in 2025, according to DefiLlama data. Despite this, the project continues to attract interest from investors and institutions.
Looking Forward
The approval of the VanEck JitoSOL ETF could pave the way for further innovation in the cryptocurrency ETF space, particularly for liquid staking tokens. As the regulatory landscape evolves, the potential for increased institutional adoption and retail participation in staking economics through ETFs becomes more promising. The coming months will be crucial as the SEC reviews this and other similar proposals, shaping the future of crypto investment vehicles.
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