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Liquid Collective launches Liquid Staked SOL (LsSOL) to meet rising institutional demand on Solana amid growing interest in crypto ETFs.
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The new liquid staking token is supported by major custodians including Coinbase, Kraken, and Galaxy, enhancing accessibility for professional investors.
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According to COINOTAG, approximately $21 billion in SOL remains unstaked, highlighting significant growth potential for liquid staking solutions on Solana.
Liquid Collective introduces LsSOL to capture institutional interest in Solana, with ETFs poised to drive billions in inflows and boost liquid staking adoption.
Liquid Staked SOL (LsSOL) Emerges as Key Institutional Gateway on Solana
Liquid Collective’s introduction of Liquid Staked SOL (LsSOL) marks a pivotal development in Solana’s staking ecosystem, targeting the increasing appetite from institutional investors. By partnering with leading custodians such as Coinbase, Kraken, Galaxy, Anchorage Digital, and Fireblocks, the protocol ensures robust infrastructure for secure custody and seamless staking operations. This collaboration not only facilitates easier access to staked SOL but also aligns with the growing trend of institutional-grade crypto products.
Data from SolanaBeach.io reveals that a substantial portion of Solana’s circulating supply—approximately $21 billion worth of SOL—remains unstaked, underscoring untapped potential. Currently, liquid staking solutions account for 14% of staked SOL, with Jito dominating the market. Liquid Collective’s entry introduces a competitive option that leverages its proven expertise from Ethereum’s liquid staking space, where its Liquid Staked ETH (LsETH) holds over $1 billion in total value locked.
Institutional Demand and Regulatory Landscape Fuel Growth Prospects
Coinbase’s Lewis Han emphasized that LsSOL’s integration into the Prime Onchain Wallet responds directly to institutional demand for secure and comprehensive staking solutions. This move comes at a time when US regulators are actively reviewing several Solana-based exchange-traded funds (ETFs), signaling a maturing regulatory environment that could unlock significant capital inflows.
With seven Solana ETF applications currently pending at the US Securities and Exchange Commission, market participants anticipate a positive regulatory outcome. The potential approval of these ETFs is expected to catalyze a surge in institutional investment, further driving demand for liquid staking products like LsSOL.
Solana ETFs: A Catalyst for Capital Inflows and Market Expansion
Analysts project a 95% probability that Solana ETFs will receive approval within the year, a development that could inject between $3 billion and $6 billion into the market during the initial six months, according to VanEck’s Matthew Sigel. This influx would not only enhance liquidity but also solidify Solana’s position as a leading blockchain for institutional investors.
The success of Bitcoin ETFs since their 2024 launch contrasts with the more cautious uptake of Ether ETFs, though recent trends indicate growing interest in ETH funds. Solana’s ETF prospects, coupled with innovative liquid staking solutions, position the network to capture a significant share of institutional crypto allocations.
Broader Implications for the Crypto Staking Ecosystem
Liquid Collective’s expansion beyond Ethereum staking exemplifies a broader industry shift towards multi-chain staking support. By enabling liquid staking on Solana, the protocol not only diversifies its offerings but also contributes to the maturation of staking infrastructure across ecosystems. This evolution is critical as staked assets increasingly underpin market liquidity and investor strategies.
Moreover, the collaboration with top custodians ensures that institutional investors benefit from enhanced security, regulatory compliance, and operational efficiency—key factors driving adoption in the professional segment.
Conclusion
Liquid Collective’s launch of LsSOL represents a strategic response to growing institutional interest in Solana, supported by a favorable regulatory outlook for Solana ETFs. As liquid staking gains traction, products like LsSOL will play an essential role in unlocking the value of unstaked assets and facilitating capital inflows. The integration with leading custodians further strengthens the infrastructure needed to support this growth, positioning Solana as a compelling choice for institutional crypto investors seeking diversified exposure and secure staking solutions.
