Canada Launches World's First Spot Solana ETFs With Staking

Canada is set to introduce the world’s first spot Solana (SOL) exchange-traded funds (ETFs) on April 16, following the approval by the Ontario Securities Commission (OSC) for listings from four major issuers: Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ. This development was highlighted in a social media post by a senior ETF analyst on April 14, who noted that the funds will include staking.

Unlike futures-based products, these spot Solana ETFs will hold SOL tokens directly, providing investors with real-time price exposure to the underlying asset. Each fund will track a different Solana-related index, offering diversified investment strategies while maintaining on-chain backing. This move solidifies Canada’s position as a global leader in crypto ETF innovation, having previously launched the first spot Bitcoin and Ethereum ETFs ahead of other major markets.

The ETFs will participate in Solana staking to earn rewards, aiming to boost net returns for holders while helping to offset management fees and operational costs. The staking model may offer yields higher than those available from Ethereum staking products, reflecting Solana’s higher network reward rates. The ETFs aim to distribute these rewards back to shareholders, reducing the effective cost of holding the ETF over time.

The mechanism of staking through an ETF is still novel, and while exact operational details haven’t been disclosed, the inclusion signals a growing willingness by Canadian regulators to embrace hybrid financial-crypto structures that blend DeFi features with traditional fund architecture. The documentation references “via TD,” indicating that TD Bank distributed fund-related information. However, it is clarified that TD is not facilitating the staking directly nor acting as a custodian for the staking process.

In contrast, the US has yet to approve any spot altcoin ETFs beyond Ethereum (ETH). The only Solana ETFs available to US investors are futures-based products, which have failed to generate meaningful traction. The Solana ETFs have experienced lackluster growth and generated “very little in AUM.” The 2x leveraged XRP ETF, which launched more recently, has already outpaced the Solana futures ETFs in assets under management, highlighting a weak reception for SOL exposure in the US so far.

The Canadian launch provides the first regulated test case for spot altcoin ETFs with staking rewards. If the SOL ETFs see stronger adoption than their US futures counterparts, it could pressure regulators elsewhere to revisit their stance on spot altcoin ETF approvals, especially in jurisdictions where the debate over crypto regulation remains contentious. With this launch, Solana joins Bitcoin and Ethereum in Canada’s regulated ETF ecosystem, giving investors an expanding suite of compliant crypto investment vehicles with direct blockchain exposure.