According to a recent leak from an SEC meeting memo dated February 5, 2025, discussions have emerged regarding the integration of staking functionality into Exchange-Traded Products (ETPs). Representatives from Jito Labs and Multicoin Capital Management discussed viable methods to enhance the investor experience by reflecting the inherent value of the underlying crypto assets more accurately.
Incorporating staking into ETPs is crucial as it not only aids in better price discovery but also bolsters the security of the native networks. The SEC identified two promising approaches for embedding a staking model: first, by permitting a subset of ETP assets to be staked via delegated validation nodes without compromising liquidity. The second method involves the use of Liquidity Staking Tokens (LST), which would facilitate staking across numerous digital assets, significantly enhancing the accessibility of staking for investors.