Solana Infrastructure provider Jito Labs and asset managers VanEck Bitwise, as well as two other stakeholders. appealing The US Securities and Exchange Commission has been asked to permit liquid staking of Solana Exchange Traded Products.
The liquid staking method involves allocating tokens and receiving derivative tokens in exchange. “locked up.” Tokens liquid staked (LSTs), can be loaned, sold or used as part of decentralized finance. The process does introduce additional risks that are not present in the traditional staking methods.
The Solana Policy Institute as well as Multicoin Capital Management are among the groups that have made appeals to the SEC. They argue liquid staking can improve capital efficiency because it allows ETP issuers the option to not be forced into a rebalancing.
“If issuers are forced to limit staking to a set percentage of assets, large creations and redemptions would force rebalancing, thereby increasing the costs of operating the ETP and introducing potential tracking error,” This is what the letter says. “LSTs could be used to rebalance quickly in that scenario and could even be delivered or received in-kind by [authorized participants]…”
The letter also mentions increased network security, more options for ETP investors, and an increase in revenue. As many as nine Solana(SOLThe SEC has yet to make a final decision on ETPs.
This letter doesn’t cover liquid staking risks, such as smart contract bugs, vulnerabilities or depegging, and risks associated with slashing. Although it stated that traditional staking is acceptable, the SEC did not issue formal guidelines on liquid staking. may not constitute a securities offering If the process is linked directly to one of consensus.
Related: Smart contracts and staking arrive on Bitcoin’s base layer
Crypto ETP stakes will be a major issue by 2025
ETPs have been a popular choice for cryptocurrency enthusiasts. Ether Issuers (ETHThe funds also seek approval of staking options.
Nasdaq commenced trading on 17 July. filed an application with the SEC The stock exchange will allow staking on BlackRock’s iShares Ether ETF. The stock exchange filed similar applications for Grayscale On February,
Analysts are bullish about the possibility of adding stakes to Ether ETFs. allow for an influx of institutional capital Invest these funds.
Robchnick said in March 2025 that the Ether ETF of BlackRock has not been successful. been “less perfect” without staking.
Magazine: X Hall of Flame: Bitcoin $500K prediction, spot Ether ETF ‘staking issue’— Thomas Fahrer
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Source: cointelegraph.com
