As demand for crypto exchange-traded products (ETPs) is growing, 21Shares, a Swiss-based financial services company, launched JitoSOL ETP, the first European ETP, backed by Solana’s leading Liquid Staking Tokens (LSTs).
While it is the first ETP in Europe in terms of using the JitoSOL funds, several other crypto ETPs have already hit the European market. The ticker of the ETP is JSOL, and the fund is currently trading on the Euronext Amsterdam and Euronext Paris stock exchanges.
For newbies, an LST is a tokenized representation of staked crypto assets. Here, Solana (SOL) is the asset; users stake SOL via Jito, a leading liquid staking and MEV infrastructure protocol on Solana. Once users stake, they receive JitoSOL in return and continue earning staking rewards.
In short, the 21Shares JSOL ETP intends to provide investors with both Solana price exposure and liquid staking rewards through JitoSOL.
Why 21Shares’ JitoSOL matters for the European market?
With the new regulated crypto ETP, 21Shares is targeting institutional investors, such as asset managers, family offices, and funds. The firm chose Solana’s JitoSOL liquidity protocol as it is the largest LST on Solana, and has the “deepest liquidity on decentralized exchanges.”
Moreover, JitoSOL has “countless integrations across Solana decentralized finance (DeFi),” according to an official post by Jito.
VanEck’s JitoSOL ETF filing in US under review
Last year, VanEck filed for the JitoSOL exchange-traded fund (ETF) in the US, which is still under review by the Securities and Exchange Commission (SEC). Building momentum for the Solana-based liquidity protocol, 21Shares’ JitoSOL ETP signals expansion into Europe and beyond US markets.
ETPs and ETFs see increased demand
21Shares has previously launched several crypto ETPs and exchange-traded funds (ETFs), providing regulated exposure to various assets. 21Shares Ethereum Staking ETP (AETH), Solana Staking ETP (ASOL), XRP ETP (AXRP), Chainlink ETP, Cardano ETP, and Aave ETP are some of the prominent single-asset crypto funds launched by the asset management platform.
In the US market, where crypto adoption is actively progressing, BlackRock, 21Shares, VanEck, ProShares, Grayscale, and Bitwise have already launched crypto ETFs. For the European market, 21Shares is one of the largest providers of crypto ETPs.
Recently, Valour, the UK subsidiary of DeFi Technologies, received the UK’s Financial Conduct Authority (FCA) approval to launch yield-bearing ETPs to retail crypto investing.
The core reasons for the increased demand for crypto ETFs and ETPs include the ability to gain exposure to crypto without actually holding the tokens and improving regulatory clarity.
