Four asset managers—Purpose, Evolve, CI, and 3iQ—are set to launch spot Solana exchange-traded funds (ETFs) in Canada on April 16.
Four asset managers—Purpose, Evolve, CI, and 3iQ—are set to launch spot Solana exchange-traded funds (ETFs) in Canada on April 16. These funds will trade on the Toronto Stock Exchange, following approval from the Ontario Securities Commission (OSC). The ETFs will feature staking of Solana (SOL), which could result in higher yields compared to Ether staking. This approval marks the first instance of spot Solana ETFs and comes as part of Canada's regulatory update, which allows for crypto-related investment products to be publicly traded.
The OSC’s green light for these ETFs follows regulatory changes that were outlined in January, allowing publicly traded funds to hold cryptocurrencies. While these ETFs are being introduced in Canada, the U.S. has yet to approve similar products for Solana. In the U.S., multiple firms, including Grayscale, Bitwise, and VanEck, have submitted applications to launch spot Solana ETFs, but they are still awaiting approval from the Securities and Exchange Commission (SEC). Unlike in Canada, U.S. crypto ETFs are currently not allowed to stake digital assets like Solana for additional yield.
The OSC’s approval is seen as a significant move in the altcoin ETF market. Eric Balchunas, a senior ETF analyst for Bloomberg, pointed out that these upcoming funds would offer a first look at how altcoins like Solana could perform in the ETF space. These ETFs will enable Canadian investors to gain exposure to Solana without directly holding the tokens themselves. The funds are expected to help further institutionalize the crypto market in Canada.
This approval puts Canada ahead of the U.S. in offering a spot Solana ETF. U.S.-based firms such as Grayscale and Fidelity are still awaiting SEC approval for similar products. Currently, the only Solana ETFs available in the U.S. track Solana futures, with Volatility Shares launching two such funds in March. These funds, however, have seen limited success, with the Volatility Shares Solana ETF (SOLZ) and the 2X Solana ETF (SOLT) attracting only a modest amount of assets.
The launch of the Solana ETFs in Canada comes amid growing interest in crypto ETFs in general. Bitcoin and Ether ETFs have attracted billions in assets, with Bitcoin ETFs setting new records. Despite this, analysts, including Katalin Tischhauser from crypto bank Sygnum, have expressed caution, noting that while there is excitement surrounding altcoin ETFs, the actual investor demand remains uncertain.
With these new ETFs, Canadian investors will soon have more options to invest in Solana, which has gained considerable attention due to its position as one of the top altcoins in the market. However, how these Solana ETFs perform in comparison to Bitcoin or Ether ETFs will be closely watched.
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