Solana News Today: Investors Weigh Canary's Staking Rewards vs. Lower-Fee Competitors in Solana ETF Race

Canary Capital has submitted its sixth amendment for a Solana (SOL) ETF, signaling proximity to U.S. Securities and Exchange Commission (SEC) approval and public trading on the Cboe BZX Exchange. The ETF, titled the Canary Marinade Solana ETF, features a 0.50% expense ratio and retains all staking rewards for shareholders, distinguishing it from competitors like Bitwise, which charges a 0.20% fee but retains approximately 6% of staking rewards Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1]. This structure complicates direct fee comparisons, as staking rewards can add 45–50 basis points to returns Canary Capital Nears SEC Approval for XRP and Solana ETFs Amid Broader Crypto ETF Momentum^[2].

The ETF plans to stake the majority of its SOL holdings via Marinade Finance, a staking provider, while reserving a portion of SOL for liquidity and expenses to meet redemption demands without disrupting staking activities Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1]. Staking rewards will factor into the fund's net asset value (NAV), calculated using CoinDesk Solana CCIXber 60-minute averages Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1]. Eric Balchunas, a Bloomberg ETF analyst, emphasized that tracking difference-measuring performance relative to Solana's price after accounting for operational and staking effects-is a critical metric for investors. He noted that staking deductions outside the expense ratio contribute to tracking difference, which represents the "true fee" for investors Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1].

The ETF's filing indicates it is registered as a continuous offering under the Securities Act of 1933 but not under the Investment Company Act of 1940, meaning investors lack protections afforded to traditional mutual funds or futures markets Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1]. Shares are expected to list shortly after SEC approval, with the ticker symbol SOLC. The fund aims to provide price exposure to Solana while generating staking rewards, positioning itself as a competitive alternative to existing offerings by offering lower expense ratios and full staking reward retention Canary Files Sixth Amendment for Solana ETF With Unique Staking Structure^[1].

Canary's progress aligns with broader regulatory shifts under the current administration, which has expedited crypto ETF approvals through new listing standards. The firm's recent fee reductions to 0.50% for its XRP and Solana ETFs reflect competitive pressures in the emerging crypto ETF market Canary Capital Nears SEC Approval for XRP and Solana ETFs Amid Broader Crypto ETF Momentum^[2]. While the SEC's approval timeline remains uncertain due to recent government shutdown delays, analysts anticipate batch approvals for single-product crypto ETFs in October and November 2025 Canary Capital Nears SEC Approval for XRP and Solana ETFs Amid Broader Crypto ETF Momentum^[2].