- Canada is set to launch the world’s first spot Solana ETFs on April 16, approved by the Ontario Securities Commission and managed by Purpose, Evolve, CI, and 3iQ.
- Unlike the U.S., these ETFs will allow SOL staking for added yield, marking a significant step forward in the altcoin investment landscape.
Canada has been at the forefront of offering Spot ETFs. In the same vein, the U.S. are following in their footsteps. The Purpose Bitcoin ETF, launched in February 2021, is widely recognized as the world’s first spot Bitcoin ETF, now, Canada will officially launch its ever first Spot Solana ETF.
According to Bloomberg analyst Eric Balchunas, asset managers Purpose, Evolve, CI, and 3iQ have received the green light from the Ontario Securities Commission (OSC) to issue ETFs holding Solana (SOL).
This news broke after Balchunas shared via the X platform of a private client note from TD Bank. Notably this bank as of January 31, 2025, TD Bank Group had $569 billion in assets under management (AUM).
Notably the note confirmed that these ETFs will not only hold Solana but will also be permitted to stake a portion of their SOL holdings for added yield. This is an interesting feature as it will allow investors to earn additional returns from their investments through staking.
One factor that has seen Canada make major strides when it comes to crypto and specifically Spot ETFs is their decentralized approach to securities regulation. Unlike the United States, which has a federal securities agency, Canada’s territories and provinces, including Ontario, regulate their own securities laws. In this case, the OSC oversees Toronto’s securities exchange, providing a framework for this new development.
The approval of a Solana ETF in Canada comes at a time when the U.S. Securities and Exchange Commission has yet approved a similar product or any altcoin-based product despite the many applications by widely known asset managers.
While the SEC has allowed Bitcoin and Ether ETFs to trade, altcoins have largely been left out. The SEC’s hesitation with altcoins could be due to regulatory uncertainty surrounding cryptocurrencies and concerns about market volatility.
Balchunas pointed out that this approval is a “first look at the altcoin race,” as it represents a significant move into the broader cryptocurrency market, beyond Bitcoin and Ether. He also mentioned that the OSC’s decision is in line with a January notice, which outlined amended rules for publicly traded funds holding cryptocurrencies.
Notably, this move has attracted heightened discussions within the crypto community. Katalin Tischhauser has expressed uncertainty. The head of research at crypto bank Sygnum has raised concerns about the actual demand for these products. Tischhauser noted that while the market is abuzz with speculation, it is unclear where substantial demand for altcoin ETFs will come from.
In the U.S., the Solana futures ETFs, such as Volatility Shares’ SOLZ, have had a lukewarm reception. The fund has attracted only about $5 million in net assets, signaling that investor interest in Solana-based products remains tepid. However, Balchunas suggested that the lack of success for these futures-based Solana ETFs may not be a clear indicator for how spot Solana ETFs will perform, especially given the unique nature of these new funds.
Meanwhile, SOL is swapping hands with $131.63 marking a 1.04% decline in the past 24 hours.
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