Key Highlights
VanEck has submitted a groundbreaking application for a Solana ETF backed by liquid staking token JitoSOL. Jito bulls may face a challenge in surpassing the $2 mark to continue the uptrend.
VanEck, a major asset manager with $133 billion in assets, has made history by being the first entity to apply for a JitoSOL ETF with the SEC (Securities and Exchange Commission).
This application is particularly significant as it marks the first filing for a liquid staking token (LST) or deposit receipt tokens that represent the amount of tokens locked in staking operations.
The ETF will be based on Solana [SOL] but fully supported by JitoSOL (which represents staked SOL in the Jito protocol).
Source: SEC
A Victory for Jito and Solana Staking?
Tushar Jain, co-founder of Solana-focused Multicoin Cap, described the news as ‘a major win for Jito and Solana.’
The filing is the result of extensive collaboration between VanEck, the SEC staff, and the liquid staking platform, Jito, as highlighted by the Web 3 company.
In May, the SEC clarified that protocol staking for PoS (Proof-of-stake) networks does not constitute a security.
Furthermore, in early August, the regulator stated that LSTs are considered ‘technical receipts’ and fall within the definition of security or investment contract.
This development is expected to pave the way for staking in spot ETFs, enhancing liquidity and tax clarity, according to industry experts.
Regarding the VanEck application, the liquid staking platform stated that,
“Jito will continue to lead the way in institutional adoption.”
Others also see this move as a positive development for the liquid staking market, particularly in Solana DeFi.
The announcement boosted the value of Jito [JTO], the native token of Jito, by 10% on the weekly charts.
While the uptrend pushed above the 100-day Simple Moving Average, indicating bullish momentum, it encountered resistance at the $2 level (red).
Source: Jito/USDC, TradingView
If bulls fail to turn $2 into support, the altcoin’s uptrend could slow down in the short term. If the bulls manage to extend the rally, the next target would be $2.2.
Top Binance traders have recently reduced their long positions from 62% to 49% over the past two days, indicating profit-taking behavior.
Source: Coinglass
This indicates that the $2 resistance level could become a key area of selling pressure in the short term as more traders decide to take profits at that level.
Nevertheless, the expectations surrounding the ETF could serve as a significant catalyst for both traders and long-term investors.
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