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21Shares Introduces JitoSOL‑Backed Solana Exchange‑Traded Product to European Markets.

By Alex Rivera

21Shares Introduces Europe’s First JitoSOL‑Backed Solana ETP, Ticker JSOL, on Euronext

Switzerland‑based issuer 21Shares has added a Jito‑staked Solana exchange‑traded product (ETP) to its European lineup, offering investors exposure to SOL together with built‑in staking yields.

Overview

21Shares announced the launch of the Jito Staked SOL ETP (JSOL), a physically‑backed fund that holds the liquid‑staking token JitoSOL. The product is listed in both US‑dollar and euro denominations on Euronext Amsterdam and Paris, marking the first time a European‑listed ETP is directly backed by JitoSOL.

The ETP’s net asset value (NAV) incorporates rewards generated from staking, allowing investors to benefit from Solana’s proof‑of‑stake (PoS) earnings without managing validator delegations themselves.

How the Product Works

  • JitoSOL is issued by the Jito Network and represents SOL tokens that have been deposited into a liquid staking program on the Solana blockchain.
  • Unlike traditional staking, the tokens remain transferable, giving holders the flexibility of a liquid asset while still earning staking and validator‑related (MEV) rewards.
  • By holding JitoSOL, the JSOL ETP automatically captures these yields, which are reflected in the fund’s NAV on a daily basis.

This structure aims to simplify institutional access to Solana’s staking economics, eliminating the operational complexities of direct on‑chain delegation.

Market Context

The launch follows a series of moves by Jito Labs and several asset managers to expand the reach of liquid‑staking solutions beyond the United States, where regulators have approved Solana staking ETFs but have yet to clear products that rely on liquid‑staking tokens.

  • In the U.S., Bitwise and Grayscale have rolled out staking‑enabled Solana ETFs that combine spot exposure with staking income.
  • Jito Labs, together with VanEck and Bitwise, has been lobbying the U.S. Securities and Exchange Commission (SEC) for permission to list liquid‑staking based funds, arguing that such products improve capital efficiency and reduce the need for frequent rebalancing.

The European market, with its relatively mature framework for crypto‑E​TPs, provides a more permissive environment for the introduction of liquid‑staking products like JSOL.

21Shares’ Position

21Shares, a subsidiary of FalconX since October 2023, currently manages ≈ $8 billion in assets and offers more than 55 crypto‑focused ETPs across European exchanges. The firm launched its first physically‑backed crypto ETP in 2018 and has increasingly diversified its offerings to include staking‑related instruments.

By adding JSOL, the issuer reinforces its strategy of delivering “one‑stop‑shop” solutions for institutional investors seeking exposure to emerging blockchain ecosystems while capturing associated yield.

Analysis

  1. Regulatory Advantage – Europe’s established ETP regime offers a clear pathway for products that blend spot exposure with staking rewards. This reduces compliance risk compared with the U.S., where the SEC remains cautious about liquid‑staking mechanisms.

  2. Liquidity Premium – JitoSOL’s design, which keeps staked SOL transferable, addresses one of the main criticisms of traditional staking—illiquidity. Institutional investors can now obtain a “yield‑bearing” exposure that can be bought and sold on major exchanges without waiting for unstaking periods.

  3. MEV Capture – By routing SOL through Jito’s validator infrastructure, the ETP captures not only staking rewards but also MEV (Miner Extractable Value) proceeds, potentially boosting yields relative to classic staking.

  4. Competitive Landscape – The product competes directly with U.S.-based Solana staking ETFs, but the European positioning may attract capital from funds that are barred from U.S. liquid‑staking products. It also serves as a proof‑point for future cross‑border listings.

  5. Market Reception – With JitoSOL’s market cap around $1.7 billion (CoinGecko), the underlying asset already enjoys significant liquidity and investor interest, which should support healthy secondary‑market trading of the JSOL ETP.

Key Takeaways

  • First in Europe – JSOL is the inaugural European ETP directly backed by a liquid‑staking token, offering a novel blend of spot exposure and on‑chain yield.
  • Regulatory Friendly – Leveraging Europe’s ETP framework circumvents the current U.S. restrictions on liquid‑staking products.
  • Enhanced Yield – Investors gain access to both staking rewards and MEV income without managing validator delegations.
  • Strategic Fit for 21Shares – The launch expands the issuer’s suite of crypto‑focused products and reinforces its role as a conduit for institutional participation in the Solana ecosystem.
  • Potential Catalyst – Successful adoption could accelerate the rollout of additional liquid‑staking ETPs across other PoS networks and jurisdictions.

The introduction of the Jito Staked SOL ETP underscores the growing convergence of traditional finance structures with decentralized finance mechanisms, offering a streamlined avenue for institutions to capture the upside of Solana’s rapidly evolving staking landscape.



Source: https://cointelegraph.com/news/21shares-first-jito-staked-solana-etp-europe?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound

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