- Canada became the first country to launch spot Solana ETFs with staking, combining regulated exposure with passive income.
- The four ETFs approved by the OSC may deliver 2%–3.5% annual staking yield in addition to SOL’s price performance.
- This innovation could pressure global regulators, including the U.S. SEC, to expand crypto ETF offerings beyond Bitcoin and Ethereum.
A Turning Point in Crypto-Backed ETFs
On April 16, 2025, Canada once again cemented its position as a global leader in digital asset innovation. The Toronto Stock Exchange welcomed four spot Solana exchange-traded funds (ETFs) with a unique twist — staking. For the first time, investors can gain exposure to Solana’s market price through a regulated financial product while simultaneously earning staking rewards within the ETF structure.
This milestone doesn’t just expand access to Solana (SOL) — it fundamentally changes the conversation around how exchange-traded funds can integrate blockchain-native features like staking into mainstream finance. With the Ontario Securities Commission (OSC) approving products from 3iQ, Purpose, Evolve, and CI Financial, Canada has given both institutional and retail investors a secure, income-generating pathway into Solana’s fast-growing ecosystem.
As the U.S. Securities and Exchange Commission (SEC) continues to deliberate over dozens of crypto ETF applications, Canada’s trailblazing model may provide a blueprint for the next wave of regulated digital asset products worldwide.
What Are Spot Solana ETFs and Why Do They Matter?
A spot Solana ETF is an investment fund traded on traditional stock exchanges that holds Solana tokens directly. Unlike futures-based ETFs, which speculate on future price movements using derivatives, spot ETFs track the real-time market value of the underlying asset.
This distinction is crucial. Futures ETFs often face pricing inefficiencies and roll costs, leading to performance mismatches. Spot ETFs, on the other hand, offer more transparency and accuracy by holding the actual asset. For investors, that means better alignment with Solana’s real-time supply-and-demand dynamics.
By lowering barriers to entry — no need for wallets, private keys, or crypto exchanges — spot Solana ETFs make it easier for mainstream investors to participate in Solana’s growth while staying within regulated financial markets.
The Launch on the Toronto Stock Exchange
On April 16, 2025, Canada became the first jurisdiction to approve and launch spot Solana ETFs with staking. The OSC authorized four issuers:
- 3iQ Solana Staking ETF (SOLQ)
- Purpose Solana ETF
- Evolve Solana Staking ETF
- CI Financial Solana ETF
Within two days of trading, these products attracted approximately $73.5 million in combined assets under management (AUM), underscoring strong investor interest.
Each ETF differs in structure — some track Solana-related indices, others focus solely on SOL — but all use institutional-grade cold storage for custody and offer staking participation. The inclusion of staking rewards sets these funds apart globally.
How Staking Enhances Returns
Staking allows token holders to delegate their SOL to validators, helping secure the Solana network and earning rewards in return. Traditionally, only crypto-native investors could stake. Now, Canadian ETFs make staking rewards accessible through a familiar investment vehicle.
The four ETFs can stake up to 50% of their assets, with rewards shared between shareholders and fund managers. Analysts estimate this could add 2%–3.5% in annual yield, on top of SOL’s market performance.
Table: Key Features of Canada’s Spot Solana ETFs with Staking
| ETF Provider | Product Name | Management Fee | Staking Allocation | Estimated Yield | AUM (Launch Week) | Custody Partner |
|---|---|---|---|---|---|---|
| 3iQ | Solana Staking ETF (SOLQ) | 0.50% | Up to 50% | 2%–3.5% | $24M | Gemini/TD Bank |
| Purpose | Purpose Solana ETF | 0.15% (waived initially) | ~40% | 2%–3% | $20M | Coinbase Custody |
| Evolve | Evolve Solana Staking ETF | 0.40% | Up to 45% | 2%–3.5% | $16M | Fidelity Digital Assets |
| CI Financial | CI Solana ETF | 1.00% | Up to 50% | 2%–3.5% | $13.5M | Gemini |
Figures based on early trading data and issuer disclosures.
Also Read: Solana Jumps Past $153 After First Staking ETF Launch
This structure not only enhances potential returns but also reduces the effective long-term cost of holding the ETF, since staking rewards offset management fees.
Solana vs Ethereum: A Staking Advantage
Ethereum’s staking ecosystem is more established, but Solana offers higher typical yields — often between 6% and 8%, compared to Ethereum’s 3%–4%. By integrating staking into ETFs, Canadian issuers highlight Solana’s potential to deliver stronger passive income opportunities.
ETF analyst Eric Balchunas of Bloomberg noted that Canada’s move to greenlight SOL spot ETFs with staking could spark a trend:
“This is a big deal. Canada continues to lead the way in crypto ETFs, and adding staking into the mix brings new income potential for investors.”
Cathie Wood’s ARK Invest has already responded by incorporating staked Solana into its ARKW and ARKF funds through exposure to 3iQ’s ETF, signaling confidence from one of the most influential institutional crypto advocates.
Passive Income Meets Regulatory Innovation
The inclusion of staking within a regulated ETF structure addresses a long-standing investor demand: income generation from proof-of-stake (PoS) assets.
Unlike futures-based ETFs in the U.S. or non-staking crypto ETFs in Europe, Canada’s model unlocks passive income through a secure, compliant product.
For traditional investors who seek yield alongside growth, this could make Solana ETFs far more attractive. However, staking is not risk-free. Possible challenges include:
- Slashing penalties if validators misbehave.
- Network disruptions, which could affect staking rewards.
- Liquidity constraints, since staked assets may face lock-up periods.
Still, the OSC’s approval underscores Canada’s willingness to embrace crypto’s native features, rather than confining products to price-tracking only.
Canada’s History of Crypto ETF Firsts
Canada has consistently led global ETF innovation in crypto:
| Year | Milestone | Global Impact |
|---|---|---|
| 2021 | First spot Bitcoin ETF (Purpose Bitcoin ETF) | Set precedent for crypto ETFs globally |
| 2021 | First spot Ethereum ETF | Expanded regulated access to ETH |
| 2025 | First spot Solana ETF with staking | Introduced staking into ETF structure |
This track record highlights a regulatory environment that balances investor protection with openness to financial innovation.
What It Means for the United States and Beyond
Canada’s Solana ETF launch arrives just weeks after the Chicago Mercantile Exchange (CME) introduced Solana futures, a move seen as a precursor to U.S. ETF approvals.
As of April 21, 2025, the SEC is reviewing 72 crypto-related ETF applications, spanning assets from XRP and Cardano to memecoins like Dogecoin. The U.S. process is slower due to fragmented oversight between the SEC, CFTC, and state regulators.
Still, Canada’s model may pressure U.S. regulators to consider staking within ETF structures. The question is whether Washington will follow Ottawa’s lead — or maintain a narrower, more cautious path focused only on Bitcoin and Ethereum.
Broader Implications for Solana and the Market
The approval of staking-enabled Solana ETFs could strengthen SOL’s position as a leading layer-1 blockchain by:
- Driving institutional demand through regulated products.
- Highlighting staking as a core value proposition for proof-of-stake tokens.
- Setting Solana apart from Ethereum in terms of yield-focused investment products.
With assets under management already exceeding $70 million within days, and international adoption signals from ARK Invest, the impact of Canada’s move may ripple far beyond its borders.
A Global Test Case for the Future of Crypto ETFs
By approving spot Solana ETFs with staking, Canada has set a precedent that could redefine how digital assets integrate into mainstream finance. For investors, it combines the accessibility of traditional ETFs with the passive income potential of staking. For regulators, it offers a controlled framework to embrace blockchain-native features without sacrificing oversight.
Whether the SEC and other global regulators follow Canada’s lead remains uncertain. But one thing is clear: April 16, 2025, may be remembered as the day when ETFs stopped simply tracking crypto — and started unlocking its true financial potential.
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