Canada is set to launch four spot Solana ETFs, surpassing the U.S. in crypto developments. Following the success of its bitcoin ETF, Canada continues to lead in crypto product integrations, while the US SEC holds off on similar approvals. These new funds will incorporate staking strategies and zero management fees, highlighting Canada’s progressive approach in the cryptocurrency market.
Canada is once again poised to surpass the United States in the cryptocurrency space with the anticipated launch of spot Solana exchange-traded funds (ETFs) on the Toronto Stock Exchange. Four firms—Purpose Investments, Evolve, 3iQ, and CI Global Asset Management—are gearing up for their rollout on Wednesday. This marks another significant stride in Canada’s progression with crypto ETFs, following Purpose’s introduction of the world’s first physically-backed bitcoin ETF in February 2021, which was quickly followed by others in the country.
Notably, Canadian securities regulators approved spot ether ETFs just two months after the debut of bitcoin ETFs, contrasting sharply with the U.S. Securities and Exchange Commission (SEC), which has not approved spot bitcoin and ether ETFs until 2024. Despite a supportive political environment for cryptocurrency in the U.S., Canada continues to lead in integrating crypto-based assets into established financial products.
In a recent conversation with 3iQ regarding their solana fund filing last summer, it was noted that U.S. firm VanEck had also proposed a spot solana ETF. Although the SEC is deliberating the proposal, they appear to be proceeding with caution, especially in light of the recent introduction of CME SOL futures contracts. Furthermore, while Canadian ether ETFs stake a portion of their ETH holdings, U.S. counterparts are yet to receive SEC approval for such practices.
SEC Commissioner Hester Peirce commented that the commission may need to address custody and related issues before permitting these changes. In contrast, Evolve has declared its intention to stake up to 50% of its SOL holdings and has introduced an initial 0% management fee through the end of 2025. Purpose Investments has stated that its staking will utilise in-house validator infrastructure, avoiding third-party fees, while CI’s fund will leverage Galaxy Asset Management for its staking strategies. The launch of these solana ETFs is anticipated this week, signalling a competitive landscape for crypto assets.
