Canada is preparing to launch the first spot Solana exchange-traded funds (ETFs) in North America with staking capabilities, following regulatory approval from the Ontario Securities Commission.
The OSC has approved four issuers, Purpose, Evolve, CI, and 3iQ, to list the new ETFs, with trading expected to begin on April 16, Bloomberg ETF analyst Eric Balchunas shared on Monday.
According to a circular shared by Toronto-Dominion Bank, each fund will hold physical Solana and allow staking, a mechanism that lets investors earn rewards by participating in the blockchain’s consensus process.
“All soon-to-be-launched Solana will invest in long-term holdings of Solana in physical form but will track different indices,” the circular stated. “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.”
Brazil Broke Ground on Solana ETFs, Canada Takes It a Step Further
While Brazil became the first country to approve a Solana-based ETF in Aug. 2024, Canada’s upcoming rollout marks a significant step in the expansion of staking-enabled crypto ETFs in developed markets.
Brazil’s Solana ETF was among the first of its kind globally. Canada’s upcoming launch, however, stands out for incorporating staking as a core feature—an innovation still under regulatory review in several other jurisdictions.
US Asset Managers Await SEC Nod as Staking ETFs Gain Global Traction
In the US, asset managers including WisdomTree, Bitwise, 21Shares, Franklin Templeton and Canary Capital have filed applications for altcoin-based ETFs such as Solana and XRP. However, none have received SEC approval. The US regulator has also yet to greenlight staking as part of any ETF structure.
Staking has emerged as a key differentiator in next-generation crypto ETFs, offering the potential for yield generation alongside capital appreciation. While Canadian regulators have embraced this model, US authorities continue to evaluate its implications.
Bloomberg analyst James Seyffart expects US approval for staking in ETFs could come by late 2025, depending on evolving regulatory perspectives.
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