Canada Approves First Spot Solana ETFs with Staking for April 16 Launch

TLDR

• Canada will launch spot Solana ETFs with staking capabilities on April 16, 2025
• Purpose, Evolve, CI, and 3iQ are the approved asset managers for these ETFs
• The ETFs will allow staking for added yield, ahead of US regulatory approval
• US Solana futures ETFs have seen limited investor interest so far
• Canada has previously led with crypto ETFs, launching the first spot Bitcoin ETF in 2021

Canada plans to launch several spot Solana (SOL) exchange-traded funds (ETFs) with staking capabilities on April 16, 2025. These will be the world’s first spot Solana ETFs, according to Bloomberg senior ETF analyst Eric Balchunas.

The Ontario Securities Commission (OSC), which oversees the Toronto Stock Exchange, has approved four asset managers to list these products. Purpose Investments, Evolve Funds Group, CI Global Asset Management, and 3iQ Digital Asset Management will offer the ETFs.

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

This launch highlights Canada’s leading role in crypto ETF innovation. The country previously launched the first spot Bitcoin ETF in February 2021, well ahead of similar products in the United States.

Staking Yields Create Competitive Advantage

What makes these Solana ETFs unique is their staking capability. Staking allows ETF holders to earn rewards from the underlying SOL tokens being staked on the network.

According to a TD Bank circular shared by Balchunas, “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.”

This feature could attract investors looking for both price exposure and passive income. The staking component gives Canadian ETFs a competitive advantage over current US offerings.

US regulators have been hesitant to approve staking in ETFs. On Monday, the SEC delayed a decision on Grayscale’s proposal to include staking in its spot Ethereum ETF until June 1, 2025.

Expanding Global Interest in Crypto ETFs

The launch comes amid growing global interest in regulated crypto investment products. Since January 2024, when the US Securities and Exchange Commission (SEC) approved the first batch of spot Bitcoin ETFs, there has been a wave of filings for other digital assets.

Several US asset managers have submitted proposals for altcoin-based spot ETFs. WisdomTree, Bitwise, 21Shares, Franklin Templeton, and Canary Capital have filed for products tied to cryptocurrencies like XRP and Solana.

However, none of these US altcoin ETF applications have received regulatory approval yet. Bloomberg analyst James Seyffart has projected that US-listed ETFs might gain permission to engage in staking by late 2025.

Early Performance Indicators

The performance of existing US Solana futures ETFs might provide clues about investor appetite for these products. Balchunas noted that two Solana ETFs in the US that track futures have attracted very little in assets under management.

Volatility Shares’ Solana ETF (SOLZ) has only accumulated around $5 million in net assets since its March launch. Balchunas added that a leveraged XRP ETF already has more assets under management than both US Solana ETFs combined, despite launching later.

“Wouldn’t read a ton into it, but it’s our first look at the alt coin race,” Balchunas wrote on X. He cautioned that these futures-based products aren’t perfect comparisons for spot ETFs.

Broader Crypto Market Context

The launch comes during a period of market volatility for Solana. The cryptocurrency was trading at $129.97 as of the reporting date, down 2.2% over 24 hours according to CoinGecko data.

Other cryptocurrencies have shown recent strength. XRP, Solana, and Dogecoin all gained at least 7.5% in a single day after President Trump paused his tariff plan for 90 days.

The broader crypto ETF space has experienced mixed results recently. US Ethereum ETFs have faced five consecutive days of outflows totaling $88.5 million as part of larger April withdrawals.

Bitcoin ETFs have also seen outflows, losing approximately 10,000 Bitcoin in April. Despite these outflows, ETFs remain major Bitcoin holders, controlling about 6.1% of the total supply globally.

Institutional Adoption Continues

The Canadian Solana ETF approval comes amid other signs of increasing mainstream crypto adoption. PayPal and Venmo recently announced plans to add support for Solana and Chainlink.

Users of these popular payment apps will soon be able to buy, sell, hold, and transfer SOL directly within their accounts. PayPal stated that adding these coins reflects its “dedication to the evolving digital currency landscape.”

Regulated crypto ETFs have also emerged in other markets. Hong Kong and Australia have introduced spot crypto ETFs, showing the global nature of institutional demand for compliant digital asset exposure.

As Canada prepares to launch these staking-enabled spot Solana ETFs, they once again demonstrate their leadership in crypto investment products. The success of these ETFs could influence future regulatory decisions in the US and other markets.