Canada Plans to Launch Spot Solana ETFs with Staking Capabilities
Canada plans to launch a number of spot Solana (SOL) exchange-traded funds (ETFs) with staking capabilities on Wednesday, according to Bloomberg senior ETF analyst Eric Balchunas.
In a post on X, Balchunas cited a circular from Toronto-Dominion Bank stating that the Ontario Securities Commission (OSC), which oversees the Toronto Stock Exchange, has approved four asset managers to list the new products.
“The OSC today gave the go-ahead to ETF issuers, including Purpose, Evolve, CI, and 3iQ, to list the world’s first spot Solana ETFs in Canada,” a screenshotted copy of the circular reads.
“All soon-to-be-launched Solana will invest in long-term holdings of Solana in physical form but will track different indices,” it continues. “The new Solana ETFs will engage in staking activities to earn rewards, which may provide higher yields than Ether staking and reduce overall ETF holding costs.”
Solana is currently trading at $129.97, down 2.2% over the last 24 hours, CoinGecko data shows.
The upcoming Solana ETF launch comes amid accelerating interest in spot crypto ETFs globally. In January 2024, the U.S. Securities and Exchange Commission (SEC) approved the first batch of spot Bitcoin ETFs after years of resistance.
That move has since triggered a wave of filings tied to other digital assets in the country, particularly following crypto-friendly President Donald Trump’s reelection late last year and a changing guard at the SEC.
However, Balchunas warned that two Solana ETFs in the U.S. that track futures had very little in assets under management, though it’s not a perfect comparison.
“The 2x XRP already has more AUM than both the Solana ETFs, and it came out after. Wouldn’t read a ton into it, but it’s our first look at the alt coin race,” he wrote.
Asset managers in the U.S., such as WisdomTree, Bitwise, 21Shares, Franklin Templeton, and Canary Capital, have also submitted proposals for altcoin-based spot ETFs such as XRP and Solana. However, none of these applications have yet received regulatory approval.
Meanwhile, Hong Kong and Australian markets have also introduced regulated spot crypto ETFs, reflecting a broader push among institutional investors for compliant digital asset exposure. Canada approved its first spot Bitcoin ETF in February 2021.
Staking has become a key feature in the next generation of crypto ETFs. While Canadian regulators have approved staking in ETFs, U.S. authorities remain hesitant.
On Monday, the SEC delayed a decision on Grayscale’s proposal to include staking in its spot Ethereum ETF. The Commission extended the review period to June 1, 2025, citing the need for further analysis.
To date, the SEC has not approved staking in any ETF. Bloomberg analyst James Seyffart has projected that U.S.-listed ETFs could gain permission to engage in staking by late 2025, depending on regulatory developments.
Edited by Sebastian Sinclair