Canada is preparing to launch exchange-traded funds (ETFs) based on the cryptocurrency Solana. This step was made possible through local regulators' approval.
Regulatory Approval
According to Bloomberg analysts, ETF trading based on Solana will begin on April 16 in Canada. Based on information from analyst Eric Balchunas, the Ontario Securities Commission (OSC) has approved asset managers Purpose, Evolve, CI, and 3iQ to issue funds that will hold Solana (SOL). These ETFs will also be able to earn yield through staking part of their assets.
Comparison with the US
While Canadian ETFs on Solana have received the green light, in the US, the Securities and Exchange Commission (SEC) is processing many applications for ETFs based on alternative cryptocurrencies, but has only approved funds focused on Bitcoin and Ether. Bloomberg analyst James Seyffart noted that staking for crypto ETFs in the US remains prohibited.
Market Reaction to ETFs
From a market perspective, the first Solana ETFs based on derivatives from Volatility Shares, launched in March, showed minimal investor interest, attracting only about $5 million. Eric Balchunas noted that two U.S.-based Solana ETFs focused on futures also did not demonstrate active interest, which does not provide grounds to believe that similar funds in Canada could generate significant demand.
Thus, the launch of Solana-based ETFs in Canada marks a new stage in the evolution of the cryptocurrency market; however, its success will depend on investor demand.
