TLDR
- Canada will launch spot Solana ETFs with staking capabilities on April 16, 2025
- Four asset managers (Purpose, Evolve, CI, and 3iQ) received approval from the Ontario Securities Commission
- These will be the world’s first spot Solana ETFs with staking, potentially offering higher yields than Ethereum staking
- Current US Solana ETFs that track futures have seen limited investor interest
- The global trend toward crypto ETFs continues, but US regulators remain hesitant about approving staking features
Canada is continuing its crypto ETF leadership with the launch of the world’s first spot Solana (SOL) exchange-traded funds this week. The Ontario Securities Commission (OSC) has given approval to four asset managers to list these pioneering products with staking capabilities on the Toronto Stock Exchange starting April 16.
According to Bloomberg senior ETF analyst Eric Balchunas, Purpose Investments, Evolve Funds Group, CI Global Asset Management, and 3iQ Digital Asset Management will offer these new Solana ETFs. The launch marks another instance where Canada has moved ahead of the United States in crypto ETF innovation.
Canada is readying spot Solana ETFs to launch this week after regulator gave green light to multiple issuers incl Purpose, Evolve, CI and 3iQ. ETFs will include staking via TD pic.twitter.com/FSw149Xkm4
— Eric Balchunas (@EricBalchunas) April 14, 2025
The new products will allow investors to gain exposure to Solana through a regulated investment vehicle. Unlike futures-based alternatives, these ETFs will hold actual SOL tokens. They will also engage in staking activities to earn rewards, potentially offering higher yields than Ethereum staking while reducing overall ETF holding costs.
Canada’s Crypto ETF Leadership
This isn’t Canada’s first move as a crypto ETF pioneer. The country approved its first spot Bitcoin ETF in February 2021, well before the United States. Canadian regulators have consistently shown more openness to crypto innovation within regulated frameworks.
The OSC’s approval comes as interest in spot crypto ETFs grows globally. In January 2024, the U.S. Securities and Exchange Commission (SEC) finally approved spot Bitcoin ETFs after years of resistance. Hong Kong and Australian markets have also introduced regulated spot crypto ETFs recently.
However, Canadian regulators have gone a step further by approving staking within these ETFs. Staking has become a key feature investors look for in the next generation of crypto products. While Canadian authorities have embraced this functionality, U.S. regulators remain cautious.
U.S. Hesitancy on Staking
The SEC recently 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 more 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.
Many industry observers believe the inclusion of staking would make these products more attractive to investors. Existing U.S. Solana ETFs, which track futures and lack staking capabilities, have seen limited interest.
Mixed Performance for Crypto ETFs
Balchunas noted that U.S. Solana ETFs have attracted little in assets under management. He pointed out that “the 2x XRP already has more AUM than both the Solana ETFs, and it came out after,” though he cautioned against reading too much into these early results.
Meanwhile, U.S. Ethereum ETFs have experienced five consecutive days of outflows totaling US$88.5 million as part of larger April withdrawals. Bitcoin ETFs have seen similar patterns with about 10,000 Bitcoin in outflows during April.
Despite these recent outflows, ETFs remain major holders of cryptocurrency. According to recent data, Bitcoin ETFs globally account for 6.1% of the total BTC supply, making them the largest Bitcoin holders worldwide.
The launch of Solana ETFs in Canada comes as the cryptocurrency trades at approximately $129.97. The price has fluctuated recently, with SOL and other altcoins showing volatility following market developments.
Solana has been gaining broader recognition in mainstream finance. Recently, PayPal and Venmo announced plans to add support for Solana and Chainlink alongside Bitcoin and Ethereum, reflecting growing institutional interest in these assets.
Several U.S. asset managers, including WisdomTree, Bitwise, 21Shares, Franklin Templeton, and Canary Capital, have submitted proposals for altcoin-based spot ETFs including Solana and XRP. However, none of these applications have received regulatory approval yet.
