Solana ETFs With Staking Are Here — And Canada Is the First to Do It

Solana Spot ETFs With Staking Set To Launch In Canada This Week

Canada is preparing to introduce the world’s first spot Solana exchange-traded funds (ETFs), offering investors not only direct exposure to the SOL token but also staking rewards.

These ETFs, set to begin trading on 16 April 2025, have received approval from the Ontario Securities Commission (OSC), marking another bold move in Canada’s expanding crypto investment landscape.

Who Are the Issuers and What Makes These ETFs Different?

Four major asset managers—Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ—will each launch their own version of the Solana ETF.

Unlike futures-based products commonly available in the United States, these Canadian ETFs will hold actual Solana tokens.

This structure allows investors to gain real-time exposure to the cryptocurrency’s market price.

Each ETF will track a unique Solana-focused index, providing a variety of strategies for institutional and retail investors alike.

What sets these products apart is their ability to stake the underlying SOL tokens, generating passive income for holders.

Staking Integration Offers Extra Yield Potential

According to documents reviewed by Bloomberg’s senior ETF analyst Eric Balchunas, the funds will participate in staking to generate rewards.

These returns are intended to offset operational fees and enhance net yields.

Balchunas noted that staking details were included “via TD,” referring to TD Bank’s role in distributing fund-related information, though he clarified the bank will not facilitate staking or custody services directly.

Staking through an ETF remains a relatively new concept.

Solana’s network, which offers higher staking rewards compared to Ethereum, could make these products more appealing to income-focused investors.

The model is designed to pass staking earnings back to ETF holders, lowering the effective cost of holding the fund over time.

Will The United States Follow Canada’s Lead?

With this launch, Solana joins Bitcoin and Ethereum in Canada’s list of regulated crypto ETFs—positioning the country as one of the few jurisdictions actively supporting spot crypto products.

The move adds to Canada’s reputation as a front-runner in the crypto fund space, having already introduced the first spot Bitcoin and Ethereum ETFs well before other global markets.

Meanwhile, US regulators have taken a slower approach.

So far, only Ethereum and Bitcoin have seen limited spot ETF approvals in the United States, with Solana exposure restricted to futures-based options.

According to Balchunas, these futures products have generated “very little in AUM” and failed to gain significant interest.

The contrast has become even more apparent with the recent launch of the 2x leveraged XRP ETF in the US, which has already attracted more assets than all existing Solana futures ETFs combined.

Several US firms—including Grayscale, 21Shares, Bitwise, VanEck, and Franklin Templeton—have filed for Solana ETF approval, but decisions remain pending.

On prediction platform Polymarket, expectations for a US Solana ETF approval by the end of 2025 have climbed to 81%, up from 65% earlier this year.

Will This Drive Institutional Interest in Solana?

Ahead of the launch, Solana has seen a notable increase in price—up 25% over the past week.

Analysts attribute the rise to growing institutional interest, which may now accelerate further with the availability of staking-enabled ETFs.

According to Whale Alert, blockchain tracking platform, large transactions are spotted ahead of the ETF launch.

A whale has moved 762,416 SOL, valued at approximately $101 million, to a new wallet.

Separately, another transferred 790,427 SOL, worth over $105 million, “from unknown wallet to unknown wallet”.

These high-value moves suggest that large holders may be preparing for increased market momentum.

Staking Feature Could Boost Appeal Over Ethereum ETFs

With staking now part of the ETF offering, these new Solana products may have an edge over existing crypto ETFs.

Balchunas pointed out that this marks “a major innovation in the ETF space, providing hybrid exposure to both crypto price movements and staking income.”

In contrast, efforts to include staking in Ethereum ETFs remain stalled.

The US Securities and Exchange Commission recently delayed Grayscale’s application to allow staking in its ETH Spot ETF, creating uncertainty around similar products south of the border.

Investor sentiment appears to favour Solana’s direction.

For now, Canada is setting the pace with a unique blend of DeFi functionality within a traditional ETF framework.