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Canada is poised to make history as it prepares to launch the first-ever spot Solana ETFs with staking. According to Bloomberg Senior ETF expert Eric Balchunas, Toronto-Dominion Bank has recently issued a circular indicating that the Ontario Securities Commission (OSC), which oversees the Toronto Stock Exchange, has authorized four asset managers to bring this innovative product to the market.
The OSC has given the green light to Purpose, Evolve, CI, and 3iQ to launch the first-ever spot Solana ETFs in Canada. Once live, these ETFs will hold long-term assets of Solana in tangible form but monitor various indexes.
What sets these ETFs apart is their integration with staking. The new Solana ETFs will participate in staking to earn rewards, potentially offering better returns than Ethereum staking and reducing the overall costs associated with holding the ETFs. As of now, Solana is trading at $129.97, having dropped 2.2% over the past 24 hours according to CoinGecko.
This development comes amidst growing interest in spot crypto ETFs globally. Just last January, the US Securities and Exchange Commission (SEC) approved the first series of spot Bitcoin ETFs after years of rejection. This breakthrough has triggered a flurry of applications for other digital currencies within the country, particularly following President Donald Trump’s re-election late last year and the subsequent change in SEC leadership.
It is essential to note that Balchunas cautions against drawing parallels between Solana ETFs in the US that track futures and those that will soon be launched in Canada. The former, he explains, have low assets under management (AUM), a distinction not directly comparable. This initial glimpse at competition among alternative coins should not be overemphasized.
Portfolio managers within the United States, including WisdomTree, Bitwise, 21 Shares, Franklin Templeton, and Canary Capital, have also requested permission to launch spot ETFs focused on altcoins such as XRP and Solana. However, these applications remain pending before regulatory bodies.
In contrast, markets in Hong Kong and Australia have already launched regulated spot crypto ETFs, demonstrating a broader shift toward granting large-scale investors regulated access to digital assets. Canada, in fact, approved its inaugural spot Bitcoin ETF in February 2021. Staking is now an integral component of the new crypto ETFs. While Canadian regulators have permitted staking in ETFs, their US counterparts remain uncertain about it.
On Monday, the SEC delayed a decision on Grayscale’s proposal to integrate staking into its Ethereum ETF, pushing back the review deadline to June 1, 2025 and requesting additional analysis. The SEC has yet to approve staking in any ETF. Bloomberg expert James Seyffart predicts that US-listed ETFs may be permitted to engage in staking by late 2025 if regulatory circumstances change favorably.
In related news, we have also published a piece on the best crypto aggregator for this year.
Source: https://bitcoinik.com/canada-set-to-launch-first-ever-spot-solana-etfs-with-staking/
