Nasdaq in the US moves to list Jito Solana ETF, seeks SEC approval

Nasdaq in the United States is seeking to list an exchange-traded fund (ETF) that uses the Solana (SOL)-based liquid staking token Jito Solana (JitoSOL) as its underlying asset.

According to Cointelegraph on the 26th (local time), Nasdaq submitted a proposed rule change to the US Securities and Exchange Commission (SEC) to list the “VanEck JitoSOL ETF.” The product will be structured as a trust that directly holds Jito Solana, a liquid staking token. Liquid staking allows users to deposit tokens in a proof-of-stake (PoS) network to earn rewards while also receiving an additional transferable token representing the stake.

Brian Smith, president of the Jito Foundation, said, “If approved, staking rewards will not be distributed separately but will be reflected in the net asset value (NAV).” Jito Solana is designed so staking rewards accrue with automatic compounding, and the tokens held by the trust will reflect both the staked SOL and the staking income generated.

The filing was submitted under Nasdaq Rule 5711(d) as “commodity-based trust shares.” The proposal cited the SEC’s previously approved spot Bitcoin (BTC) and spot Ethereum (ETH) ETF precedents, arguing that it meets requirements to prevent fraud and market manipulation. It also maintained that approval could be possible “through other means” even if there is no regulated futures market for Jito Solana.

The trust will be valued based on the “MarketVector JitoSol VWAP Close Index” and plans to allow both cash and in-kind creations and redemptions. It also argued that because Jito Solana is economically highly correlated with SOL, it could be treated similarly to existing listing standards.

The SEC must decide to approve or deny within 45 days of publication in the Federal Register, and the review period may be extended up to 90 days.

There are currently no liquid staking token ETFs listed in the United States. However, products that reflect staking income—such as the REX-Osprey Solana + Staking ETF (SSK) and the REX-Osprey Ethereum + Staking ETF (ESK)—are trading. Grayscale has also added staking features to its Ethereum- and Solana-related products.