VanEck’s JitoSOL ETF: Solana’s Miracle or a Mirage?

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Key Takeaways 

VanEck has filed a historic spot Solana ETF fully backed liquid staking token JitoSOL. In the near term, Jito bulls may need to clear $2 hurdle to advance the rally. 🧠

VanEck, a $133B asset manager, has become the first issuer to apply for a JitoSOL ETF with the SEC (Securities and Exchange Commission). Bless their hearts, they’re trying to make staking as easy as pie, but let’s not get ahead of ourselves. 🧩

This was also historic as it was the first filing for a liquid staking token (LST) or deposit receipt tokens that represent the amount of tokens locked in staking operations. Imagine that-tokens that don’t do anything but sit there and collect dust. 🚀

It will be a Solana [SOL] ETF but fully backed by JitoSOL (which represents staked SOL in the Jito protocol). So, it’s like a piggy bank that’s already been filled with someone else’s money. 💸

A win for Jito and Solana staking?

For his part, Tushar Jain, co-founder of Solana-focused Multicoin Cap, said the update was ‘a huge win for Jito and Solana.’ Well, if by ‘huge win’ he means ‘a lot of paperwork and a few more headaches,’ then sure, it’s a win. 🧩

However, the filing was part of a long collaboration with the SEC staff and the liquid staking platform, Jito, the Web 3 firm noted in a statement. The SEC, in a moment of clarity, said that protocol staking for PoS networks doesn’t count as a security. But then, in August, they changed their mind again, calling LSTs ‘technical receipts’ and… well, you know how the SEC is. 🚀

In fact, in May, the SEC clarified that protocol staking for PoS (Proof-of-work) networks didn’t constitute a security. Wait-Proof-of-work? That’s the old-school stuff, right? 🤔

Additionally, in early August, the regulator noted that LSTs were ‘technical receipts’ and do fall within the security definition or investment contract. So, it’s a security, but not a security? That’s the kind of logic that makes your head spin. 🌀

This will eventually pave the way for staking in spot ETFs to enhance liquidity and tax clarity, according to experts. Tax clarity? That’s like saying a pirate’s map has a ‘clear’ path to treasure. 🏴‍☠️

On the VanEck filing, the liquid staking platform added that,

“Jito will remain at the tip of the spear for institutional adoption.”

Others also viewed the move as a positive development for the liquid staking market, and specifically Solana DeFi. Positive? Or just a temporary reprieve before the next storm? 🌩️

The update extended the rally of Jito [JTO], the native token of Jito, to 10% on the weekly charts. That’s like a toddler on a sugar rush-excited, but not exactly stable. 🍬

While the rally mounted above the 100-day Simple Moving Average, underscoring bullish strength, it hit a $2 resistance zone (red). The $2 mark is a stubborn wall, and if the bulls can’t break through, the rally might just crash and burn like a fireworks show in a hurricane. 📉

Unless bulls flip $2 to support, the altcoin’s rally could cool off in the near term. If bulls manage to extend the rally, the immediate upside target would be $2.2. But let’s not get ahead of ourselves-$2 is already a mountain. 🏔️

The short-term cool-off was also observed amongst top Binance traders. They trimmed their long position from 62% to 49% in the past two days, suggesting profit-taking. Profit-taking? That’s the fancy way of saying, “I’m selling before the crash.” 📈

This meant that the $2 overhead resistance could become a key supply zone in the near term if more players realized their profits at that level. So, it’s like a party where everyone’s trying to leave first. 🎉

Even so, the ETF expectations could become a key catalyst for traders and long-term investors. Catalyst? More like a spark in a powder keg. 🔥

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2025-08-24 07:08