VanEck Files Historic S-1 for JitoSOL ETF: The First 100% Liquid Staking Token Exchange-Traded Fund

The cryptocurrency industry reached a significant milestone when VanEck filed an S-1 with the Securities and Exchange Commission for what represents the first-ever liquid staking token (LST) backed exchange-traded fund. This groundbreaking product, built entirely around JitoSOL, promises to deliver institutional-grade access to Solana staking yields through traditional brokerage accounts, marking a pivotal moment not just for Jito and Solana, but for the entire ETF industry and the broader adoption of digital assets.

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Lucas Bruder, co-founder and CEO of Jito Labs, shared insights into this development during a recent interview, explaining the mechanics behind the product, the extensive regulatory groundwork that made it possible, and why this filing represents a fundamental shift in how traditional finance can interact with blockchain-based yield opportunities.

Understanding the JitoSOL ETF Structure

The VanEck JitoSOL Spot ETF represents a fundamentally different approach to cryptocurrency exchange-traded products compared to what has come before. Unlike standard cryptocurrency ETFs that simply hold the underlying asset passively, this product will be 100% staked and 100% backed by JitoSOL, a liquid staking token that represents staked Solana. This distinction is crucial because it means investors will have access to what Bruder describes as "essentially the best product that you can make" within the Solana ecosystem.

The structure allows everyday investors to gain exposure to Solana while simultaneously earning staking rewards, all without the technical complexity of managing cryptocurrency custody, understanding validator selection, or navigating the intricacies of blockchain consensus mechanisms. For the average retail investor or institutional allocator, this means being able to access yield-generating digital assets through familiar channels like traditional brokerage accounts.

Bruder emphasized that users who purchase this ETF will benefit from the highest yielding product available for Solana exposure, while simultaneously avoiding the operational burdens typically associated with cryptocurrency ownership. The product handles custody concerns, staking mechanics, and yield collection automatically, presenting a compelling proposition for investors who want blockchain exposure without blockchain complexity.

The Yield Advantage: Why 7-8% Matters

One of the most compelling aspects of the JitoSOL ETF is the significant yield advantage it offers over unstaked Solana products. Current staking yields on the Solana network hover around 7 to 8 percent annually, a substantial return that standard spot ETFs holding unstaked SOL would completely forgo. This yield differential represents a massive opportunity cost for investors holding traditional, non-staked cryptocurrency ETFs.

The yield generation mechanism operates through multiple channels within the Solana ecosystem. First, investors earn a percentage of the natural inflation from the network itself. Solana creates new tokens to incentivize staking participation, and JitoSOL holders capture their proportional share of this inflation. Second, and perhaps more importantly for long-term value creation, holders earn a percentage of transaction fees and network activity.

Bruder expressed optimism about the future trajectory of these fees, noting that as Solana continues to develop and mature over the coming years, transaction fees are expected to "rapidly increase," which should result in enhanced yields compared to unstaked alternatives. This forward-looking perspective positions the JitoSOL ETF not just as a current yield opportunity, but as a product that could become increasingly attractive as network utilization grows.

Liquid Staking Tokens Versus Single Validator Staking

The choice to structure this ETF around a liquid staking token rather than staking directly with a single validator reflects careful consideration of risk management and network health. JitoSOL spreads stake across a diverse array of validators, ranging from individual operators running small businesses to large institutional validator operations. This diversification provides several crucial benefits that make it particularly suitable for an ETF structure.

Risk mitigation stands as a primary advantage of the LST approach. By distributing stake across numerous validators, the product minimizes exposure to any single point of failure. If one validator experiences downtime, slashing, or operational issues, the impact on overall returns remains contained. This risk profile aligns much better with the fiduciary responsibilities of institutional investors and the expectations of retail investors accustomed to diversified investment products.

Beyond risk management, the distributed staking approach supports the broader health and decentralization of the Solana network. When significant capital flows into a single validator, it can create concentration risks for the network's consensus mechanism. By spreading stake across many participants, JitoSOL helps maintain the decentralized character of Solana while still providing investors with competitive yields.

The ETF structure also enables holders to meaningfully participate in network consensus and governance. Rather than simply holding a passive asset, investors through the JitoSOL ETF actively contribute to securing the Solana network and participate in the validation process that makes the blockchain function. This creates a more engaged form of cryptocurrency ownership that benefits both investors and the underlying network.

The Regulatory Breakthrough: Months of Strategic Engagement

The path to this S-1 filing did not happen overnight. It required months of careful planning, strategic engagement with regulators, and systematic removal of potential roadblocks. According to Bruder, the groundwork began in December and January, with Jito Labs bringing on Thomas, who spent over 20 years at James Street working on ETF products, to lead the effort as Chief Commercial Officer of the Jito Foundation.

The strategy identified several key obstacles that needed to be addressed before a JitoSOL ETF could become reality. Each of these obstacles required dedicated attention and resources to overcome, and the team approached them methodically to create a clear regulatory pathway for the product.

The first major milestone came in February when representatives from Jito and Multicoin Capital became the first industry company to meet with the SEC Crypto Task Force following the new administration's inauguration. This meeting was not simply a courtesy call but rather an intensive educational session designed to help regulators understand the fundamental mechanics of Solana, how it differs from other blockchains and digital assets they may be more familiar with, and specifically how liquid staking tokens function within this ecosystem.

Bruder noted that "a lot of conversation focused on liquid staking tokens" during this initial engagement, highlighting the centrality of LST mechanics to the regulatory discussion. This proactive approach to education helped frame the conversation around liquid staking in terms that regulators could understand and evaluate.

Addressing the Securities Classification Question

One of the most critical potential roadblocks for any cryptocurrency-related financial product involves securities classification. The question of whether JitoSOL constitutes a security under U.S. law represented a fundamental issue that needed resolution before institutional adoption could proceed. Jito Labs and the Jito Foundation tackled this challenge head-on by producing a comprehensive report analyzing why JitoSOL does not meet the criteria for securities classification.

This report, which Bruder noted is publicly available and can be found by searching for "JitoSOL Securities Classification Report," provides detailed legal and technical analysis supporting the position that JitoSOL operates as a utility token rather than a security. By making this analysis public, Jito demonstrated confidence in its conclusions while also providing a resource for regulators, potential partners, and the broader industry to reference.

The timing of this effort proved fortuitous, as the SEC under the new administration showed increasing openness to engaging with the cryptocurrency industry on these questions. Commissioner Hester Peirce, in particular, has been outspoken about cryptocurrency's potential role in the future of finance and the appropriate regulatory framework for digital assets. This shift in regulatory tone created an environment more conducive to productive dialogue about innovative products like liquid staking token ETFs.

Tax Considerations and Regulatory Clarity

Beyond securities classification, the team also recognized that tax treatment represented a significant source of uncertainty for potential institutional adopters of liquid staking products. Questions about how staking rewards should be taxed, when taxable events occur, and how to properly report LST holdings create compliance headaches that can deter institutional participation.

To address this obstacle, Jito produced a dedicated report on liquid staking taxes, providing guidance and analysis that institutions could use when evaluating the product. This proactive approach to addressing practical concerns demonstrated Jito's commitment to removing friction from the institutional adoption process.

The cumulative effect of these various reports and engagement efforts began to show results. Bruder noted that they "started to kind of see some stuff trickle in from the SEC" as the regulatory body actively considered its approach to cryptocurrency. The SEC produced its own report on staking, which Jito followed up with their report on liquid staking and how it should be permitted in exchange-traded products.

Perhaps most significantly, in early August the SEC released a statement specifically addressing liquid staking and indicating that it does not constitute a security. This regulatory clarity represented a major breakthrough, as Bruder explained: "This is going to unlock a lot of inflows into liquid staking protocols across a variety of networks, but especially Jito."

Building the Infrastructure: More Than Just Regulatory Approval

While regulatory clearance represents a necessary condition for a JitoSOL ETF, it is far from sufficient. The practical realities of operating an institutional-grade financial product require extensive infrastructure development across multiple dimensions. Bruder emphasized that finding a "forward looking partner" willing to navigate these challenges was essential, and VanEck demonstrated the appetite for pioneering work that this first-of-its-kind product demands.

Custody represents one of the most fundamental infrastructure requirements. Traditional asset managers cannot simply store cryptocurrency on hardware wallets or browser-based solutions. They require institutional-grade custodians with proper security protocols, insurance coverage, and regulatory compliance. For a JitoSOL ETF specifically, this means ensuring that qualified custodians not only support the JitoSOL token but ideally can handle minting and burning operations directly within their secure environment.

This "mint burn inside the custodian" capability that Bruder mentioned allows the ETF to stay within what he described as "the secure walled garden of these custodians," minimizing the operational risks associated with moving assets between systems. This technical requirement necessitated collaboration between Jito, VanEck, and custodial service providers to ensure the proper infrastructure exists.

Pricing, Indexing, and Liquidity Development

Beyond custody, the ETF requires robust pricing and indexing infrastructure. Institutional products need reliable, verifiable price feeds that can withstand regulatory scrutiny and provide the transparency that investors expect. This requirement drove significant work on data collection related to JitoSOL's market depth, trading volumes, and price discovery mechanisms.

Bruder highlighted the importance of recent exchange listings in building this infrastructure. JitoSOL has seen listings on major exchanges including OKX, Bullish, Gemini, and Coinbase, among others. These listings serve multiple purposes beyond simply providing trading venues for retail users. They establish price discovery mechanisms that institutional products can reference, create liquidity pools that enable large-scale trading without excessive slippage, and provide the regulatory legitimacy that comes from operating on compliant exchange platforms.

The depth of liquidity data collection required for an ETF application is substantial. Regulators and market participants need confidence that creation and redemption processes can occur efficiently without dramatically impacting market prices. By building out exchange presence and trading infrastructure over time, the ecosystem created the conditions necessary for institutional products to function properly.

The Collaborative Effort Behind the Filing

Bruder was careful to emphasize that this achievement resulted from collaboration across numerous parties. While he serves as CEO of Jito Labs, the effort to bring a JitoSOL ETF to market involved contributions from the Jito Foundation, VanEck, custodians, centralized exchanges, and other ecosystem participants. The complexity of launching a first-of-its-kind product means that no single organization could accomplish this independently.

At the Jito Foundation level, Chief Commercial Officer Thomas brought decades of ETF experience from his time at James Street, providing crucial expertise in navigating the traditional finance landscape. Brian and Thomas at the Foundation have been engaged in extensive education and relationship building with institutions and potential partners, helping to tell the story of Solana and JitoSOL in terms that traditional finance participants can understand and evaluate.

This emphasis on storytelling and education reflects a sophisticated understanding of what institutional adoption requires. Technical excellence alone is insufficient; capital allocators need to understand the investment thesis, the risk profile, and the long-term potential of any asset they consider. By "zooming out" and presenting JitoSOL within the broader context of Solana's growth trajectory and the value proposition of liquid staking, the team created the narrative framework necessary for institutional buy-in.

Why This Filing Matters for the Broader Market

The significance of this S-1 filing extends well beyond Jito and Solana. As the first LST-based ETF to reach this stage, the VanEck JitoSOL product establishes a template that other issuers and other blockchain ecosystems can follow. Bruder explicitly stated his expectation that "other issuers kind of follow on board and do something similar with JitoSOL," recognizing that first-mover status in financial product innovation typically attracts competition.

The logic driving this expectation is straightforward: a 100% staked ETF offering 7-8% yield represents a fundamentally superior product compared to unstaked alternatives that sacrifice this return. As Bruder succinctly put it, "7% yield versus a product that doesn't have 7% yield" presents a compelling value proposition. This yield differential creates competitive pressure on other ETF issuers to develop similar products or risk offering inferior returns to their investors.

This competitive dynamic could accelerate institutional adoption of liquid staking across the entire cryptocurrency industry. As more issuers pursue LST-based products, infrastructure development will continue, regulatory clarity will expand, and the overall ecosystem supporting these products will mature. Jito's pioneering work thus creates positive externalities that benefit the broader market.

What Comes Next: Continuing the Push

While the S-1 filing represents a major milestone, Bruder was quick to note that significant work remains. The filing initiates a process that typically involves "back and forth" with regulators, which is "pretty standard for all ETPs." Questions will be asked, clarifications will be provided, and additional documentation may be required before final approval can be granted.

Beyond the immediate regulatory process, Jito continues to focus on education and ecosystem development. Bruder emphasized the importance of getting people "really excited about Solana," recognizing that JitoSOL's success is inextricably linked to the success of the underlying blockchain. Investors purchasing a JitoSOL ETF need confidence not just in the liquid staking mechanism but in the long-term viability and growth of the Solana network itself.

This ongoing education effort involves both Jito Labs and the Jito Foundation working with various institutional audiences to communicate Solana's value proposition. The technology's speed, low transaction costs, and growing ecosystem of applications all contribute to the investment thesis that institutions need to understand before allocating capital.

The Broader Context of Institutional Crypto Adoption

The VanEck JitoSOL ETF filing occurs within a broader context of accelerating institutional adoption of digital assets. Following the approval of Bitcoin spot ETFs, the regulatory pathway for cryptocurrency-based exchange-traded products has become clearer, and issuers have grown more comfortable navigating the requirements. The progression from Bitcoin to Ethereum to now Solana-based products reflects the maturing understanding of digital assets among both regulators and traditional finance participants.

Liquid staking represents a particularly compelling evolution in this progression because it addresses one of the primary criticisms of cryptocurrency as an investment: the lack of yield. Traditional assets like bonds and dividend-paying stocks generate returns simply through ownership, while unstaked cryptocurrency sits passively. LST-based products transform cryptocurrency from a non-productive asset into a yield-generating instrument, making it more comparable to traditional investment options.

This transformation could prove particularly attractive to institutional allocators who must justify their portfolio choices to boards, beneficiaries, or limited partners. A 7-8% yield provides a concrete return metric that can be evaluated against other opportunities, rather than relying solely on price appreciation expectations. This yield characteristic could open doors to categories of institutional investors who previously viewed cryptocurrency as unsuitable for their mandates.

Technical Advantages of the Solana Ecosystem

The choice of Solana as the underlying blockchain for this breakthrough LST ETF is not coincidental. Solana's technical architecture offers several advantages that make it particularly well-suited for institutional liquid staking products. The network's high throughput and low transaction costs enable efficient staking operations without the fee concerns that can erode returns on other blockchains.

Solana's proof-of-stake consensus mechanism is designed to reward participants generously for securing the network, resulting in the 7-8% yields that make the JitoSOL ETF attractive. Unlike some other staking systems that have seen yields compress as participation increases, Solana's inflation schedule and fee distribution mechanisms have maintained attractive returns for stakers.

The vibrant validator ecosystem on Solana also supports the diversified staking approach that JitoSOL employs. With hundreds of validators operating on the network, JitoSOL can spread stake across numerous operators while maintaining high-quality service and competitive returns. This validator diversity is essential for the risk management properties that make the product suitable for institutional investment.

JitoSOL's Position Within the Liquid Staking Landscape

JitoSOL has established itself as a leading liquid staking solution on Solana, distinguished not just by its stake distribution strategy but by its integration with Jito's broader infrastructure products. The protocol's connection to Jito's MEV (Maximum Extractable Value) infrastructure provides additional yield opportunities that can enhance returns beyond basic staking rewards.

This integration creates a competitive advantage for JitoSOL compared to other liquid staking tokens, as holders benefit from value capture mechanisms that purely passive staking solutions cannot access. For an ETF seeking to offer the best possible returns to investors, this yield enhancement is a meaningful differentiator.

The extensive exchange listing work that preceded the ETF filing has also positioned JitoSOL well for institutional adoption. With presence on major platforms like Coinbase, Gemini, OKX, and Bullish, the token has established the liquidity profile and price discovery mechanisms that institutional products require. These listings also provide the accessibility that retail investors need to participate outside of ETF structures.

Implications for Network Decentralization

The success of a JitoSOL ETF could have significant implications for Solana's network decentralization. As capital flows into the ETF, it will translate into stake distributed across the validator set according to JitoSOL's delegation strategy. This mechanism could direct substantial resources toward supporting the decentralized operation of the Solana network.

Unlike traditional investments where capital flows have no impact on the underlying asset's functionality, cryptocurrency staking creates a direct link between investment and network security. Each dollar invested in the JitoSOL ETF contributes to the economic security of Solana by increasing the stake securing consensus. This creates an unusual situation where financial product success actively strengthens the underlying infrastructure.

The distributed delegation approach of JitoSOL also helps prevent the stake concentration that could arise if institutional capital flowed to a small number of validators. By design, the protocol spreads stake across many operators, maintaining the decentralized character of the network even as institutional participation grows. This alignment of financial incentives with network health represents a thoughtful approach to scaling institutional adoption.

The Role of the SEC Crypto Task Force

The new administration's establishment of a Crypto Task Force within the SEC has created a more constructive environment for industry engagement on complex regulatory questions. The willingness of this task force to meet with industry representatives and receive education about technical topics like liquid staking signals a shift from the adversarial posture that characterized previous regulatory approaches.

Jito's decision to be among the first to engage with this task force demonstrated strategic foresight. By establishing a relationship early and providing foundational education about Solana and liquid staking, the team helped shape regulatory understanding before formal product applications arrived. This proactive approach likely contributed to the relatively smooth regulatory pathway that the JitoSOL ETF has experienced thus far.

The task force's subsequent statements on liquid staking and securities classification validated the positions that Jito had advanced in its various reports and presentations. This alignment between industry analysis and regulatory conclusions suggests that the educational engagement achieved its intended purpose.

Considerations for Retail and Institutional Investors

For retail investors, the JitoSOL ETF offers a dramatically simplified way to participate in Solana staking yields. Rather than navigating wallet setup, understanding delegation, or managing the technical aspects of liquid staking, investors can simply purchase shares through their existing brokerage accounts. The familiar ETF structure provides the regulatory protections and reporting standards that retail investors have come to expect.

The automatic reinvestment of staking rewards through the LST mechanism also simplifies tax reporting and portfolio management. Investors need not track individual staking reward distributions or make decisions about reinvestment timing. The ETF structure handles these operational details, allowing investors to focus on allocation decisions rather than execution logistics.

For institutional investors, the product offers similar operational simplifications while also addressing the compliance and custody concerns that can prevent cryptocurrency allocation. The involvement of qualified custodians, the SEC registration process, and the traditional ETF structure all contribute to institutional comfort with the product. Investment committees can evaluate the JitoSOL ETF using familiar frameworks rather than developing new due diligence processes for direct cryptocurrency ownership.

Looking Forward: The Expanding Opportunity

The success of this filing, and hopefully eventual approval, opens doors to an expanding set of opportunities in the intersection of traditional finance and decentralized systems. Other yield-generating cryptocurrency products could follow similar pathways, and the infrastructure being built for JitoSOL will benefit subsequent entrants.

Within the Solana ecosystem specifically, the presence of an institutional-grade ETF could accelerate adoption across multiple dimensions. Increased stake securing the network enhances security and stability. Capital inflows support ecosystem development and application growth. And the legitimacy conferred by ETF approval attracts additional participants who previously viewed Solana as too risky or unfamiliar.

Bruder's concluding sentiment that "job's not finished" and there's "one more hard quarter" ahead reflects the pragmatic understanding that regulatory filings represent the beginning rather than the end of the approval process. But the trajectory is clear: liquid staking is moving from a DeFi-native concept to a mainstream financial product, and JitoSOL stands at the forefront of this transition.

The Significance of Being First

In financial markets, first-mover advantage often confers lasting benefits. The first Bitcoin ETF attracted the majority of initial inflows, and similar dynamics could apply to liquid staking products. By working diligently to be first to market with a JitoSOL ETF, VanEck and Jito have positioned themselves to capture early adopters and establish market leadership.

This first-mover position also provides advantages in the ongoing regulatory dialogue. As the template for LST ETFs, the JitoSOL product will inform how regulators evaluate subsequent applications. The precedents established through this process will shape the entire category, giving the involved parties influence over how the regulatory framework develops.

For Solana specifically, having the first LST ETF built on its network reinforces narratives about the ecosystem's institutional readiness and technical sophistication. While other networks may pursue similar products, Solana can claim the distinction of being the platform underlying this innovation.

Conclusion: A Paradigm Shift in Progress

The VanEck S-1 filing for a JitoSOL-backed ETF represents more than just another cryptocurrency product. It signifies a paradigm shift in how traditional finance can interact with blockchain-based yield opportunities. By combining the accessibility of ETF structures with the yield generation of liquid staking, this product offers investors something genuinely new: passive exposure to blockchain infrastructure that generates meaningful returns.

The months of regulatory engagement, infrastructure development, and ecosystem building that preceded this filing demonstrate the level of effort required to bridge the gap between decentralized finance and traditional markets. From SEC task force meetings to securities classification reports to exchange listings, each piece of work removed obstacles and built the foundation for this moment.

As Bruder noted, this is likely just the beginning. Other issuers will follow, other blockchains will pursue similar products, and the category of staked cryptocurrency ETFs will grow and mature. But the JitoSOL ETF will always hold the distinction of being first, a testament to the vision and execution of everyone who contributed to making this breakthrough possible.

The Solana ecosystem stands to benefit enormously from this development. Increased institutional participation brings capital, legitimacy, and attention that support further growth. The network's technical advantages and vibrant validator community position it well to absorb and benefit from institutional inflows. And the alignment between financial success and network security creates virtuous cycles that strengthen the ecosystem over time.

For investors, both retail and institutional, the message is clear: a new category of yield-generating cryptocurrency products is emerging, and JitoSOL is leading the way. The 7-8% yields available through liquid staking represent a compelling opportunity that traditional ETF structures are now beginning to unlock. As the regulatory process continues and the product moves toward potential approval, the transformation of how traditional finance accesses blockchain yield will accelerate, with implications that extend far beyond any single product or blockchain.

Facts + Figures

• VanEck filed an S-1 for the first-ever 100% liquid staking token (LST) backed ETF, using JitoSOL as the underlying asset, marking a historic first for the ETF industry.

• Current Solana staking yields range from 7 to 8% annually, representing significant yield that standard unstaked SOL ETFs would forfeit entirely.

• JitoSOL distributes stake across multiple validators, ranging from individual operators running small businesses to large institutional validator operations, providing diversification benefits.

• Jito and Multicoin Capital were the first industry representatives to meet with the SEC Crypto Task Force following the new administration's inauguration in February.

• The SEC released a statement in early August 2025 indicating that liquid staking does not constitute a security, removing a major regulatory obstacle.

• Thomas, who joined as Jito Foundation Chief Commercial Officer, has over 20 years of ETF experience from James Street, bringing critical institutional finance expertise.

• JitoSOL has received listings on major exchanges including OKX, Bullish, Gemini, and Coinbase, establishing the liquidity and price discovery infrastructure required for institutional products.

• Jito Labs published a publicly available securities classification report arguing that JitoSOL does not meet the criteria for classification as a security under U.S. law.

• A separate tax report was produced addressing liquid staking tax questions, helping to remove compliance barriers for institutional adoption.

• The planning for the ETF filing began in December/January, representing approximately 9 months of strategic preparation before the S-1 was filed.

• Staking yields come from two sources: natural network inflation creating new tokens to incentivize stakers, and transaction fees generated by network activity.

• ETF custody requirements necessitate institutional-grade custodians with proper security protocols, potentially including mint/burn capabilities within secure environments.

• Commissioner Hester Peirce has been "very outspoken on crypto" and supportive of the industry's potential role in the future of financing.

• The SEC produced its own report on staking, which Jito followed with their report on liquid staking in ETPs, demonstrating ongoing regulatory dialogue.

• This product is described as "the best product that you can make" for Solana exposure, combining highest yields with custody simplicity.

• Other ETF issuers are expected to follow with similar JitoSOL products, driven by the competitive pressure of offering 7% yield versus products with no yield.

Questions Answered

What is a liquid staking token ETF?

A liquid staking token ETF is an exchange-traded fund that holds liquid staking tokens rather than the base cryptocurrency asset. In the case of the VanEck JitoSOL ETF, the fund holds JitoSOL, which represents staked Solana that is earning staking rewards while remaining liquid and tradeable. This structure allows ETF investors to earn the staking yield (approximately 7-8% annually for Solana) while maintaining the convenience and regulatory protections of traditional ETF structures. Unlike standard cryptocurrency ETFs that simply hold unstaked assets passively, LST ETFs generate ongoing yield through participation in the network's consensus mechanism.

How does JitoSOL generate its 7-8% yield?

JitoSOL generates its yield through two primary mechanisms within the Solana network. First, holders earn a proportional share of the natural inflation from the network, as Solana creates new tokens to incentivize staking participation. Second, holders receive a percentage of transaction fees and network activity generated by users of the blockchain. As Solana usage grows and transaction volumes increase, the fee component of this yield is expected to become increasingly significant. This combination of inflation rewards and fee distribution creates the 7-8% annual yield that makes the JitoSOL ETF attractive compared to unstaked alternatives.

Why is an LST better than staking with a single validator for ETF purposes?

Using an LST like JitoSOL rather than staking directly with a single validator provides important risk mitigation and operational advantages for ETF structures. JitoSOL spreads stake across a diverse array of validators, from individual operators to institutional players, which minimizes exposure to any single point of failure. If one validator experiences downtime, slashing, or operational issues, the impact on overall returns remains contained. This diversified approach aligns better with the fiduciary responsibilities of institutional investors and the risk expectations of ETF holders. Additionally, the distributed staking approach supports network decentralization and health by preventing stake concentration.

What regulatory hurdles did Jito overcome to enable this ETF filing?

Jito addressed several major regulatory hurdles through proactive engagement over many months. The team met with the SEC Crypto Task Force in February to educate regulators about Solana and liquid staking mechanisms. They produced a publicly available securities classification report arguing that JitoSOL does not constitute a security. They created a separate report addressing liquid staking tax questions to help institutions with compliance concerns. These efforts contributed to the SEC's August 2025 statement indicating that liquid staking does not constitute a security, effectively clearing one of the most significant regulatory obstacles to LST-based financial products.

What infrastructure beyond regulatory approval is needed for a JitoSOL ETF?

Beyond regulatory approval, a JitoSOL ETF requires extensive infrastructure including qualified institutional custody that supports the JitoSOL token and ideally can handle minting and burning operations within secure environments. The ETF needs robust pricing and indexing infrastructure with reliable, verifiable price feeds that can withstand regulatory scrutiny. Adequate liquidity on exchanges is essential to ensure creation and redemption processes can occur efficiently without excessive market impact. JitoSOL has addressed this through listings on major exchanges like Coinbase, Gemini, OKX, and Bullish, establishing the liquidity profile and price discovery mechanisms required for institutional products.

Will other ETF issuers create similar JitoSOL products?

Yes, Lucas Bruder explicitly expects other ETF issuers to pursue similar JitoSOL-based products following VanEck's filing. The competitive logic is straightforward: a 100% staked ETF offering 7-8% yield represents a fundamentally superior product compared to unstaked alternatives that sacrifice this return. This yield differential creates competitive pressure on other issuers to develop similar products or risk offering inferior returns to their investors. As Bruder noted, no 100% staked ETFs or 100% LST ETFs have emerged yet despite being "the best product for users," suggesting significant room for additional market entrants.

How does this ETF benefit the Solana network?

The JitoSOL ETF benefits the Solana network in several ways. As capital flows into the ETF and translates into stake distributed across validators, it increases the economic security of the network by adding more stake to consensus. The JitoSOL delegation strategy spreads stake across many validators, supporting network decentralization even as institutional participation grows. Unlike traditional investments where capital flows have no impact on the underlying asset's functionality, each dollar invested in the JitoSOL ETF actively contributes to securing Solana's consensus mechanism, creating an unusual alignment between financial product success and network health.

When might the JitoSOL ETF be approved?

While no specific timeline was given, Lucas Bruder indicated that the S-1 filing initiates a process that typically involves "back and forth" with regulators, which is "pretty standard for all ETPs." The team is prepared to answer questions, provide clarifications, and submit additional documentation as required. Bruder's closing comment about having "one more hard quarter" of work ahead suggests the team anticipates several more months of regulatory dialogue before potential approval. The already-established regulatory clarity around liquid staking not being a security should help streamline the process compared to previous cryptocurrency ETF applications.

What makes JitoSOL different from other liquid staking options?

JitoSOL distinguishes itself through several factors beyond its stake distribution strategy. The protocol's connection to Jito's broader infrastructure products, including MEV (Maximum Extractable Value) infrastructure, provides additional yield opportunities that can enhance returns beyond basic staking rewards. The extensive exchange listing work has positioned JitoSOL well for institutional adoption, with presence on major platforms providing the liquidity and price discovery mechanisms that institutional products require. The combination of yield enhancement through MEV integration and established institutional infrastructure makes JitoSOL particularly well-suited for an ETF structure seeking to offer maximum returns.