Canada is set to launch the world’s first spot Solana (SOL) exchange-traded funds (ETFs) on April 16, after receiving approval from the Ontario Securities Commission (OSC) for listings from four major issuers: Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ. These ETFs will hold SOL tokens directly, offering investors real-time price exposure to the underlying asset by tracking different Solana-related indices and participating in Solana staking to earn rewards.
The approval solidifies Canada’s position as a leader in crypto ETF innovation, as the country had previously launched the first spot Bitcoin and Ethereum ETFs ahead of other major markets. The staking rewards from the ETFs aim to boost net returns for holders and offset management fees and operational costs, potentially offering higher yields than Ethereum staking products due to Solana’s higher network reward rates. These rewards will be distributed back to shareholders, reducing the effective cost of holding the ETF over time.
Although TD Bank distributed fund-related information, it is not directly facilitating the staking or acting as a custodian for the process. While exact operational details of the staking mechanism through the ETFs have not been disclosed, the inclusion signals Canadian regulators’ growing willingness to embrace hybrid financial-crypto structures that combine DeFi features with traditional fund architecture. In contrast, the US has yet to approve any spot altcoin ETFs beyond Ethereum, with only futures-based Solana ETFs available to US investors, which have not gained significant traction.
The Solana ETFs in the US have experienced lackluster growth, with very little in assets under management, while the 2x leveraged XRP ETF has outpaced the Solana futures ETFs in terms of assets under management since its more recent launch. The Canadian launch of the spot Solana ETFs with staking rewards provides a regulated test case for spot altcoin ETFs, and if they see strong adoption compared to their US futures counterparts, it may influence regulators in other jurisdictions to reconsider their stance on approving spot altcoin ETFs.
With the launch of the Solana ETFs, Canada now offers investors a widening range of compliant crypto investment vehicles with direct blockchain exposure, joining Bitcoin and Ethereum in the country’s regulated ETF ecosystem. This development highlights Canada’s commitment to embracing innovative financial products in the crypto space and providing investors with diverse options to participate in the growing digital asset market.
