Jito Labs, Bitwise, Multicoin Capital, VanEck, and the Solana Institute submitted a joint letter to the U.S. Securities and Exchange Commission (SEC) on July 31, 2025, urging approval for Liquid Staking Tokens (LSTs) in pending Solana exchange-traded products (ETPs). The proposal targets eight Solana ETF applications and argues that LST integration enhances capital efficiency, operational resilience, and risk management while aligning with SEC guidelines for in-kind creation/redemption processes.
Bitwise and VanEck spearheaded the petition, emphasizing that LSTs like JitoSOL would provide investors flexible, secure exposure to staking yields within ETFs. Jito Labs stated: "LSTs boost liquidity, resilience, and cut risk, pushing for greenlight in upcoming Solana ETFs under new SEC rules." Approval could unlock institutional capital flows, reshape financial markets, and increase Total Value Locked (TVL) in Solana's ecosystem, setting a global precedent for DeFi integration in traditional finance.
The move follows SEC approvals for Bitcoin and Ethereum spot ETFs, which saw substantial inflows. Firms highlighted parallels to these precedents, anticipating similar in-kind redemption mechanisms if Solana ETFs gain clearance.