According to the Bloomberg Senior ETF expert Eric Balchunas, on Wednesday, April 16, Canada aims to unveil several positions of Solana (SOL) exchange-traded funds (ETFs) with integrated staking.
In a recent post on X, Balchunas referenced a circular issued by Toronto-Dominion Bank indicating that the Ontario Securities Commission (OSC), which manages the Toronto Stock Exchange, has authorized four asset managers to present the new products.
“The OSC has approved ETF issuers like Purpose, Evolve, CI, and 3iQ to launch the first-ever spot Solana ETFs in Canada,” according to a screenshot of the notice.
“All set to launch soon, Solana will place funds in long-term assets of Solana in tangible form but will monitor various indexes,” it remains ongoing. “The new Solana ETFs will take part in staking to receive rewards, which could give better returns than Ether staking and lower the overall costs of holding the ETFs.”
At present, Solana is trading at $129.97, dropping 2.2% in the past 24 hours, according to the data shown by CoinGecko.
Solana ETF Status
The release of the Solana ETF comes as interest in spot crypto ETFs is growing quickly worldwide. In January 2024, the U.S. Securities and Exchange Commission (SEC) cleared the first series of spot Bitcoin ETFs after years of refusal.
That decision has led to a series of applications related to other digital currencies within the country, especially after crypto-supportive President Donald Trump was reelected late last year and there was a change in leadership at the SEC.
On the other hand, Balchunas cautioned that Solana ETFs in the U.S. that monitor futures had Low AUM (assets under management), although it is not a well-matched comparison.
The 2x XRP currently holds more AUM than both the Solana ETFs, and it was launched after. I would not think too much of it, but it’s our initial glimpse at the competition among alternative coins,” he wrote.
Portfolio managers in the U.S., like WisdomTree, Bitwise, 21 Shares, Franklin Templeton, and Canary Capital, have also asked for approval to launch spot ETFs based on altcoins like XRP and Solana. But so far, none of these requests have been approved by regulators.
On the other hand, Hong Kong and Australian markets have also launched regulated spot crypto ETFs, indicating a wider movement against large-scale investors for regulated digital asset access. Canada approved its initial spot Bitcoin ETF in February 2021.
Staking is now an important part of the new crypto ETFs. While Canadian regulators have allowed staking in ETFs, U.S. authorities are still uncertain about it.
On Monday, the SEC postponed a decision on Grayscale’s suggestion to include staking in its spot Ethereum ETF. The Commission pushed back the review deadline to June 1, 2025, saying more analysis is needed.
So far, the SEC has not approved staking in any ETF. Bloomberg expert James Seyffart believes that U.S.-listed ETFs might be allowed to stake by late 2025, depending on how regulations change.
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