A Historic Milestone for Crypto Investors

On April 14, 2025, Eric Balchunas, a senior ETF analyst at Bloomberg, shared exciting news on X: Canada is set to launch the world’s first spot Solana exchange-traded funds (ETFs) on April 16, 2025. This move marks a significant step forward for cryptocurrency adoption, especially for Solana, a fast-growing blockchain known for its high-speed transactions and low fees. The ETFs, approved by the Ontario Securities Commission (OSC), will be offered by major issuers like Purpose Investments, Evolve, CI, and 3iQ, with a launch date just two days after the announcement.

Canada has a history of being a pioneer in the crypto ETF space. As noted in a Crypto Briefing article, the country introduced spot Bitcoin and Ethereum ETFs before the U.S. even had futures-based ETFs for these assets. Now, Solana joins the ranks, giving investors a new way to gain exposure to this promising cryptocurrency through a regulated financial product.

What Are Spot Solana ETFs and Why Do They Matter?

For those new to the term, a spot ETF directly tracks the current market price of an asset—in this case, Solana (SOL). Unlike futures-based ETFs, which bet on the future price of an asset and can be less accurate, spot ETFs hold the actual cryptocurrency in their portfolio. This means investors can gain exposure to Solana’s price movements without needing to buy and store the crypto themselves, which can be tricky due to security and wallet management concerns.

The ETFs will invest in long-term holdings of Solana, meaning they’ll buy and hold SOL tokens rather than frequently trading them. This approach aligns with a “buy and hold” strategy, which can reduce volatility for investors. Additionally, these ETFs will be listed on the Toronto Stock Exchange, making them accessible to a wide range of investors, from individuals to institutions.

Staking: A Game-Changer for Returns

One of the standout features of these Solana ETFs is their inclusion of staking. If you’re unfamiliar, staking involves locking up SOL tokens to support the Solana network’s operations, like validating transactions. In return, stakers earn rewards, often in the form of additional SOL tokens. According to Solana’s official staking guide, staking helps secure the network by making it harder for bad actors to manipulate the blockchain, while also providing yields based on factors like the network’s inflation rate and the validator’s performance.

Eric Balchunas noted that the staking will be facilitated through TD Bank, though he later clarified that TD Bank is not directly handling the staking but rather distributing information about it. The inclusion of staking means these ETFs could offer higher yields compared to traditional ETFs, as investors can benefit from both Solana’s price appreciation and staking rewards. This dual-income potential could make the ETFs more attractive, especially in a market where passive income is highly valued.

Lower Costs for Investors

Another key benefit highlighted in the announcement is the focus on reducing overall ETF holding costs. By leveraging staking rewards, the issuers aim to offset some of the management fees, which can eat into returns over time. Lower costs are a big deal for investors, as they allow more of your money to work for you rather than being siphoned off by fees. This cost-efficiency, combined with the regulated nature of ETFs, makes this launch a compelling option for those looking to dip their toes into crypto without taking on too much risk.

How Does This Compare to the U.S. Market?

In a follow-up post, Eric Balchunas pointed out that the U.S. already has two Solana ETFs, but they’re futures-based and haven’t seen much success. These ETFs have struggled to attract assets under management (AUM), with a 2x XRP ETF surpassing their AUM despite launching later. While this doesn’t necessarily predict the performance of Canada’s spot Solana ETFs, it suggests that investor appetite for altcoin ETFs (cryptocurrencies other than Bitcoin and Ethereum) can vary. The spot nature of Canada’s ETFs, along with staking benefits, might give them an edge over their U.S. counterparts.

Building on a Legacy of Innovation

This isn’t the first time 3iQ, one of the issuers, has made waves in the crypto ETF space. Back in July 2024, Crypto Briefing reported that 3iQ filed for North America’s first Solana ETF under the ticker QSOL. They also partnered with Sol Strategies in February 2025 to provide staking services for their Solana ETF, as reported by Crypto News. 3iQ has a track record of innovation, having launched Canada’s first publicly traded Bitcoin and Ether funds, so their involvement in the Solana ETF launch is a strong signal of confidence in Solana’s future.

What’s Next for Solana and Crypto ETFs?

The launch of spot Solana ETFs in Canada could pave the way for similar products in other markets, including the U.S., where regulatory hurdles have slowed crypto ETF approvals. VanEck, a major investment firm, has been bullish on Solana for years, even launching a Solana ETN in Germany back in 2021. In a 2024 report, VanEck analysts predicted that Solana would join the spot ETF race, a prediction that’s now coming true in Canada.

For investors, this launch offers a new opportunity to diversify their portfolios with a regulated crypto product. However, as with any investment, it’s important to do your research. Solana’s price can be volatile, and while staking offers rewards, it also comes with risks like network downtime or validator performance issues. Still, for those who believe in Solana’s long-term potential, these ETFs provide a convenient and cost-effective way to get involved.

Join the Conversation

What do you think about Canada’s spot Solana ETFs? Are you excited to see staking included, or are you waiting for more details on the ticker names and fees? Drop your thoughts in the comments below, and let’s discuss the future of crypto investing!