Canada Set to Launch First Spot Solana ETFs as U.S. Lags Behind
Canada is about to introduce its first spot Solana ETFs, with trading expected to begin on April 16.
The development was brought to light by Bloomberg’s Eric Balchunas, who cited a TD Bank communication indicating that the Ontario Securities Commission has authorized Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ to roll out these new products.
Unlike the U.S., Canada’s securities regulation is managed at the provincial level, and in this case, the OSC oversees activity on Toronto’s stock exchange. Notably, the approved Solana ETFs will also be allowed to stake a portion of their holdings to generate extra yield, marking a rare feature among crypto ETFs.
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Balchunas pointed to this as a signal that the broader competition among altcoin-based ETFs may just be getting started. The OSC clarified that these decisions align with updated guidance issued in January regarding cryptocurrency exposure in public investment funds.
Meanwhile, the U.S. Securities and Exchange Commission has taken a slower approach. Although many applications for altcoin ETFs are under review, only Bitcoin and Ethereum spot ETFs have cleared the regulatory hurdle so far. Staking remains off-limits in the American market, though Bloomberg’s James Seyffart believes that Ether ETFs may be allowed to stake later this year, pending further approvals.
Still, the outlook for altcoin-based ETFs remains uncertain. Katalin Tischhauser from crypto bank Sygnum expressed skepticism about whether investor interest will match the hype, pointing out that despite the excitement, there’s little evidence of strong demand for these products.
Earlier this year, Volatility Shares introduced a Solana ETF based on futures contracts, but it has attracted only modest attention, with around $5 million in assets under management. Balchunas noted that these futures-based products may not be a reliable indicator of how spot ETFs will perform once live.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
