Market Analysis

Spot Solana ETFs Set to Debut in Canada Ahead of U.S. Approval

Mellissa · 16 Apr26.5K Views

Image Credit: CoinMarketCap

Four asset managers—Purpose, Evolve, CI, and 3iQ—are set to launch spot Solana exchange-traded funds (ETFs) in Canada on April 16. These ETFs, which will be traded on the Toronto Stock Exchange, have received approval from the Ontario Securities Commission (OSC). A key feature of these funds is the staking of Solana (SOL), which could provide higher yields compared to Ether staking. This approval marks the first spot Solana ETFs, following regulatory changes in Canada that now allow crypto-related investment products to be publicly traded.

The OSC’s approval is part of Canada’s regulatory update in January, which permits publicly traded funds to hold cryptocurrencies. While these ETFs will debut in Canada, the U.S. has yet to approve similar products for Solana. Several U.S. firms, including Grayscale, Bitwise, and VanEck, have applied for approval to launch spot Solana ETFs, but are still waiting for the Securities and Exchange Commission (SEC) to make a decision. Unlike Canada, U.S. crypto ETFs are not allowed to stake digital assets like Solana for extra yield.

The approval is considered a major step for the altcoin ETF market. Bloomberg senior ETF analyst Eric Balchunas noted that these funds will offer a first look at how Solana and other altcoins could perform within the ETF space. These ETFs will allow Canadian investors to gain exposure to Solana without directly holding the tokens, helping to further institutionalize the crypto market in Canada.

This move gives Canada an edge over the U.S. in offering spot Solana ETFs, with U.S.-based firms such as Grayscale and Fidelity still awaiting SEC approval for similar products. In the U.S., the only available Solana ETFs track Solana futures, with Volatility Shares launching two such funds in March, though these have seen limited success.

The launch of Solana ETFs comes amid increasing interest in crypto ETFs, with Bitcoin and Ether ETFs drawing billions in assets, particularly Bitcoin ETFs, which have set new records. Despite this, analysts like Katalin Tischhauser from crypto bank Sygnum have expressed caution, citing uncertainty about investor demand for altcoin ETFs.

With the launch of these new Solana ETFs, Canadian investors will have more options for investing in Solana, which is considered one of the top altcoins. However, the performance of these Solana ETFs in comparison to Bitcoin and Ether ETFs will be closely monitored.