Liquid Collective has introduced a liquid staking token on Solana (SOL), responding to rising institutional interest in the network as US regulators consider several SOL-based exchange-traded funds (ETFs).
On Wednesday, the interoperable staking network unveiled Liquid Staked SOL (LsSOL) in partnership with Coinbase, Kraken, Galaxy, Anchorage Digital and Fireblocks. These partners will facilitate institutional access to LsSOL as demand for Solana grows among professional investors.
Citing data from SolanaBeach.io, Liquid Collective noted that approximately $21 billion in SOL remains unstaked. Of the staked SOL, 14% is currently staked through liquid staking solutions, with Jito leading the market, according to industry data.
Liquid Collective is best known for its Ethereum staking standard, with its Liquid Staked ETH (LsETH) holding over $1 billion in total value locked, according to Dune. Meanwhile, Ether (ETH) staking hit an all-time high in June, with over 35 million ETH staked on the network.
The protocol’s move into Solana reflects its broader effort to support staking across multiple blockchains, not just Ethereum.
Coinbase’s lead of staking sales, Lewis Han, confirmed that LsSOL will be offered through the exchange’s Prime Onchain Wallet. Han said that adding LsSOL reflects growing institutional demand for “secure, comprehensive custody and staking solutions.”
Related: Crypto staking on proof-of-stake blockchains not a security: SEC staff
Analysts see a 95% chance of Solana ETF approval this year
Liquid Collective and its partners argue that products like LsSOL will play a key role as institutional interest in crypto grows, positioning staked assets as an increasingly important part of market infrastructure.
The potential approval of several Solana ETFs could trigger significant capital inflows. VanEck’s head of digital asset research, Matthew Sigel, has estimated that between $3 billion and $6 billion could enter the market within the first six months following approval.
Currently, there are seven pending Solana ETF applications, based on S-1 filings with the US Securities and Exchange Commission.
Since their inception in 2024, US crypto ETFs have seen a tale of two markets. Bitcoin (BTC) funds launched as some of the most successful ETFs in history, while demand for Ether ETFs has been comparatively muted. However, recent data indicate that inflows into ETH funds have picked up significantly in recent months.
Related: Despite record high, S&P 500 is down in Bitcoin terms
