Important Points to Note
VanEck has made headlines by submitting paperwork for a spot Solana ETF that’s
completely backed by the liquid staking token, JitoSOL. For Jito bulls,
overcoming the $2 price point could be essential for continued upward
momentum.
VanEck, a substantial asset management firm with $133 billion under its
control, has taken the lead as the very first company to formally
apply
to the SEC (Securities and Exchange Commission) for a JitoSOL ETF.
This event carries significant historical importance, marking the first
instance of filing for an ETF related to a liquid staking token (LST). LSTs
are essentially deposit receipts representing tokens locked within staking
operations.
The proposed ETF will function as a
Solana [SOL]
ETF, but with a key difference: it will be fully secured by JitoSOL,
representing Solana staked through the Jito protocol.
Source: SEC
A Positive Development for Jito and Solana Staking?
Tushar Jain, a co-founder of Multicoin Cap, which concentrates on Solana,
commented
that this development represents “a significant victory for Jito and
Solana.”
The application for the ETF follows an extended period of engagement between
the SEC, and Jito, the liquid staking platform.
In May, the SEC
offered clarification, explaining that protocol staking for Proof-of-Stake (PoS) networks does
not qualify as a security offering.
Furthermore, in early August, regulators
indicated
that LSTs are considered “technical receipts” and, crucially, are not
categorized as securities or investment contracts.
Experts believe this ruling will ultimately encourage the inclusion of
staking within spot ETFs.
Concerning the VanEck application, the liquid staking platform
stated:
“Jito will remain at the forefront of efforts to promote adoption among
institutions.”
Other parties also view this development favorably, particularly for the
liquid staking sector, and particularly for Solana-based DeFi applications.
The news drove a 10% increase in the value of
Jito [JTO],
the Jito platform’s native token, on the weekly charts.
While the rally rose above the 100-day Simple Moving Average, signifying
bullish momentum, it met resistance around the $2 mark (highlighted in red).
Source: Jito/USDC, TradingView
If bullish investors fail to turn the $2 level into a support floor, the
altcoin’s upward trend could stall soon. Should the bulls successfully
continue the rally, the nearest price objective would be $2.2.
A cooling in the short term has also been observed among top Binance traders.
They decreased their long holdings from 62% to 49% over the past two days,
possibly indicating that they are taking profits.
Source: Coinglass
The $2 resistance level may become a critical supply zone in the short term if
more traders decide to secure their profits at that level.
Nevertheless, expectations surrounding the ETF approval remain a major
potential catalyst for both traders and long-term investors.