Skip to content
- VanEck has filed to launch a JitoSOL ETF, giving investors exposure to Solana’s liquid staking token.
- The Trust will issue and redeem shares through authorized financial institutions in cash or in-kind transactions.
- Investors face high risks, including potential rapid declines in value, as the ETF directly holds JitoSOL.
VanEck has taken a step toward expanding its digital asset offerings by filing for approval of the VanEck JitoSOL ETF. The exchange-traded fund aims to track the price of JitoSOL, a liquid staking token tied to Solana. According to the filing, the ETF will issue shares that represent ownership in the Trust, which will hold JitoSOL directly.
The shares will be listed on a national exchange under a special ticker, pending approval. The sponsor will be VanEck Digital Assets, while the trustee will be CSC Delaware Trust Company. Various custodians will handle the holdings in JitoSOL on behalf of the Trust.
The ETF’s objective is to reflect the performance of JitoSOL minus the expenses involved in running the trust. Daily valuations will be based on the MarketVector JitoSOL Benchmark Rate, which aggregates price data from what the sponsor identifies as the top five trading platforms.
VanEck JitoSOL ETF Shares Issued in 25,000 Baskets
The Trust issues shares in baskets of 25,000. Only designated financial institutions, known as authorized participants, create or redeem shares by delivering or receiving baskets directly with the Trust.
For subscription in cash, the sponsor will utilize the funds to purchase JitoSOL from a third-party liquidity provider. For redemptions, the JitoSOL will be redeemed to such providers, and proceeds will be given to the authorized participant. The in-kind transactions will constitute direct transfers of the JitoSOL between participants and custodians.
Once shares are issued, they can be traded on the open market like other ETFs. Prices will depend on investor demand, the value of JitoSOL, and general market conditions. Investors may buy or sell shares through brokers, potentially at a premium or discount to the fund’s net asset value.
SEC Notes No Insurance or Guarantees for JitoSOL Fund
The prospectus identifies critical risks associated with the fund. Since the Trust owns JitoSOL, the investors are exposed to volatility like direct ownership in the token. The price for JitoSOL can fall rapidly, even to zero, eradicating shareholder investment. Federal agencies and private entities neither insure nor guarantee the shares.
They are also not obligations of VanEck, the trustee, or any custodian. Regulators have not endorsed the securities, and the product falls outside traditional investment company and commodity pool rules. While the ETF could offer investors an easier path into Solana’s staking ecosystem, it also requires them to accept higher risks than most traditional exchange-traded products.
Related Reading: Bitcoin Staking Enters Institutions: Core and Hex Trust Expand to APAC and MENA
