Bitwise, VanEck, and others call on the SEC to approve the use of liquidity-collateralized tokens in ETPs

Jito Labs, Bitwise, Multicoin Capital, VanEck, and the Solana Policy Institute have submitted an open letter to the U.S. Securities and Exchange Commission (SEC) urging it to approve the use of Liquid Staking Tokens (LSTs) in ETPs, specifically the pending Solana ETF application submitted by eight major issuers. The letter argues that LSTs can improve capital efficiency, operational resilience, and risk management, which aligns with the SEC's recent guidance on physical (underlying asset) subscriptions and redemptions for cryptocurrency ETFs.