Canada is preparing to introduce the world’s first spot Solana (SOL) exchange-traded funds (ETFs) on April 16, 2025, following approval from the Ontario Securities Commission (OSC). Asset managers Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ have been authorized to issue these ETFs, which will hold actual Solana tokens rather than derivatives.
A key feature of these new ETFs is the ability to stake a portion of the Solana holdings. Staking involves locking up SOL tokens to support the network’s operations, generating additional rewards for investors. This is expected to boost yields and make the ETFs more appealing compared to other crypto funds that do not offer staking benefits. The staking process will be managed by TD Bank, which will handle the reporting but not the staking itself.
The launch coincides with a recent surge in Solana’s price and increased network activity. Solana has been leading blockchain transaction volumes, highlighting its growing adoption and use.
While Canada moves forward with these innovative products, the U.S. Securities and Exchange Commission has yet to approve any altcoin spot ETFs beyond Bitcoin and Ethereum. Staking remains prohibited in U.S. crypto ETFs for now, though there is speculation that Ether ETFs might gain approval to stake later this year. The Canadian launch could serve as a test case for future U.S. regulatory decisions.
Despite enthusiasm, some experts suggest that initial demand for Solana ETFs may be limited. Recent Solana futures ETFs in the U.S. have attracted relatively low investment, indicating cautious investor interest in altcoin ETFs. However, the inclusion of staking and direct token holdings in Canada could differentiate these offerings and attract more investors over time.
In summary, Canada’s approval and upcoming launch of spot Solana ETFs with staking capabilities represent a significant advancement in crypto investment products, positioning the country as a leader in the emerging altcoin ETF market.
