Canada Prepares to Launch First Solana Spot ETF

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In a groundbreaking move for cryptocurrency investment, Canada is set to launch the world’s first spot Solana (SOL) exchange-traded funds (ETFs) on April 16, 2025, complete with staking capabilities.

This development marks another milestone in Canada’s progressive approach to crypto regulation, leaving the United States trailing in the race to embrace altcoin-based ETFs.

Canada’s Bold Leap Forward

The Ontario Securities Commission (OSC) has approved multiple issuers, including Purpose Investments, Evolve Funds, CI Global Asset Management, and 3iQ, to roll out spot Solana ETFs.

According to Bloomberg ETF analyst Eric Balchunas, these ETFs will directly hold Solana tokens, offering investors exposure to the high-performance blockchain known for its scalability and low transaction costs.

What sets these ETFs apart is their staking feature, facilitated through TD Bank, which allows investors to earn annual rewards of approximately 5-7% by participating in Solana’s proof-of-stake consensus mechanism. This yield-generating opportunity is expected to attract institutional and retail investors seeking passive income from their crypto holdings.

This approval aligns with Canada’s updated regulatory framework, effective January 2025, which permits public funds to custody crypto assets.

Unlike the U.S., where a centralized securities authority governs markets, Canada’s province-based system—led by regulators like the OSC in Toronto—has enabled faster adoption of crypto investment products.

U.S. Lags Behind on Altcoin ETFs

Across the border, the U.S. Securities and Exchange Commission (SEC) remains cautious about altcoin ETFs and staking functionalities.

While the U.S. has approved spot Bitcoin and Ethereum ETFs, Solana-based ETFs are not yet on the horizon.

The SEC has also delayed decisions on staking for Grayscale’s spot Ethereum ETF, citing concerns over investor risks, market manipulation, and the legal status of staking rewards.

Bloomberg ETF analyst James Seyffart noted on X that staking approvals for Ethereum ETFs might not occur until late October 2025, with potential intermediate deadlines in May and August. The SEC’s hesitation stems from debates over whether staking rewards constitute securities under the Howey Test, adding complexity to the approval process.

Mixed Signals on Investor Demand

While Canada’s Solana ETFs are generating buzz, questions linger about their market reception. In the U.S., a futures-based Solana ETF launched by Volatility Shares in March 2025, known as SOLZ, has only amassed $5 million in assets under management—a modest figure compared to other crypto funds.

Meanwhile, a newer 2x XRP ETF has already surpassed SOLZ’s assets, raising doubts about investor appetite for Solana-based products.

However, Balchunas cautions against judging spot ETFs by their futures-based counterparts. “Futures ETFs don’t always reflect the potential of spot products, which offer direct exposure and staking rewards,” he clarified on X.

Canada’s Crypto Leadership

Canada’s embrace of spot Solana ETFs builds on its history of crypto innovation. The country approved the world’s first Bitcoin ETF in 2020 and followed with Ethereum ETFs in 2021, cementing its reputation as a crypto-friendly market.

The addition of staking in Solana ETFs further differentiates Canada’s offerings, potentially drawing global investors to its exchanges.

As Solana continues to gain traction for its fast transactions and growing ecosystem, Canada’s latest move could redefine how investors engage with cryptocurrencies. Will the U.S. follow suit, or will Canada maintain its lead in the crypto ETF race? For now, all eyes are on April 16, when these pioneering funds hit the market.