Jito Labs, Bitwise, Multicoin Capital, VanEck, and the Solana Institute have submitted a public letter to the U.S. Securities and Alternate Fee (SEC), requesting approval for using liquid staking tokens (LST) in exchange-traded merchandise (ETPs).
The letter particularly targets the pending Solana ETF purposes of eight main issuers. The businesses argued that LSTs present capital effectivity, operational resilience, and enhanced threat administration, and that this strategy aligns with the SEC’s not too long ago introduced pointers for in-kind creation and redemption processes for cryptocurrency ETPs.
Candidates state that LST integration will present buyers with a extra versatile and safe product whereas additionally supporting the event of the Solana ecosystem.
Spot ETFs for Bitcoin and Ethereum are already buying and selling on exchanges and are notable for his or her excessive influx charges. The SEC not too long ago accepted in-kind refunds for Bitcoin and Ethereum spot ETFs. This approval is anticipated to use to Solana as properly if the ETF is accepted.
*This isn’t funding recommendation.
