Push for Solana Liquid Staking in ETPs Gains Momentum
Main Idea
Solana stakeholders are advocating for SEC approval of liquid staking in Solana ETPs, mirroring similar efforts in the Ethereum ecosystem to enhance institutional inflows and market competitiveness.
Key Points
1. Solana infrastructure provider Jito Labs, along with asset managers VanEck and Bitwise, is pushing for SEC approval of liquid staking in Solana ETPs, supported by stakeholders like the Solana Policy Institute and Multicoin Capital.
2. Liquid staking could improve liquidity, avoid redemptions, and enhance network security by allowing liquid staked tokens (LSTs) to be freely traded and used.
3. The SEC has not yet provided formal guidance on liquid staking, but the conversation around staking in crypto ETPs has intensified, with Ethereum also under consideration.
4. Analysts suggest that staking could boost institutional inflows by enhancing yield, potentially making Ethereum ETFs more competitive with Bitcoin ETFs.
5. BlackRock and Grayscale are seeking SEC approval to include staking in their Ethereum ETFs, with Nasdaq submitting a proposal to allow staking in BlackRock’s iShares Ethereum ETF.
Description
Their joint letter is backed by stakeholders like the Solana Policy Institute and Multicoin Capital, and it points out how liquid staking could improve capital efficiency, reduce tracking errors, and enhance product flexibility by enabling in-kind transfers. However, the letter avoids addressing some of the risks of liquid staking like smart contract vulnerabilities and potential slashing. This push is very similar to efforts in the Ethereum ecosystem, where BlackRock and Grayscale are seeking S...
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