World’s First Spot Solana ETFs Set to Launch in Canada While U.S. Delays Grayscale ETH Staking Decision
Canada is set to launch the world’s first spot exchange-traded funds (ETFs) for Solana (SOL), a milestone in the expanding universe of crypto-based investment products.
According to Bloomberg ETF analyst Eric Balchunas, the Ontario Securities Commission (OSC) has approved multiple fund managers—Purpose, Evolve, CI, and 3iQ—to offer spot Solana ETFs, with trading expected to begin on April 16.
Unlike the United States, where securities oversight is centralized under the Securities and Exchange Commission (SEC), Canada regulates securities at the provincial level. In Ontario, home to the Toronto Stock Exchange, the OSC has been notably proactive in approving crypto-based investment products.
A key feature of the upcoming Canadian SOL ETFs is the allowance to stake a portion of their holdings. This could offer investors additional yield, enhancing the fund’s appeal. Balchunas noted that these products may offer early insight into how alternative cryptocurrency ETFs—commonly referred to as “altcoin ETFs”—perform compared to their more established Bitcoin and Ether counterparts.
The OSC’s green light aligns with a broader regulatory framework issued in January, which outlined amendments to rules governing public investment vehicles with crypto exposure.
SEC Delays Staking Decision for Grayscale ETH ETFs
Meanwhile, in the United States, the SEC remains more cautious, particularly when it comes to staking. On April 14, the agency announced it would delay a decision on whether to permit staking in Grayscale’s proposed Ethereum Trust and Ethereum Mini Trust ETFs. The next deadline for a decision is June 1, with final rulings expected no later than October, according to Cointelegraph.
Staking, which involves locking up tokens to support blockchain operations in exchange for yield, has become a critical feature for crypto investors seeking returns beyond price appreciation. Annual returns on staked Ether currently range from 2% to 7% across platforms like Coinbase and Kraken. The inclusion of staking in Ether ETFs could significantly boost investor interest by generating passive income within a regulated vehicle.
So far, Ether ETFs in the U.S. have seen moderate success. Since their debut in 2024, they’ve attracted about $2.28 billion in net inflows, according to blockchain data aggregator Sosovalue. However, these numbers still pale in comparison to the $35.4 billion that has flowed into spot Bitcoin ETFs since January.
Despite the delay on staking, the SEC has made some progress on other fronts. Earlier in April, it approved options trading for several spot Ether ETFs, including those from BlackRock, Bitwise, and Grayscale. This approval adds an important derivatives layer for institutional investors, potentially expanding the funds’ market reach.
Nevertheless, questions remain around the true investor appetite for altcoin-focused ETFs. While the Canadian launch is a positive signal, the U.S. has already seen muted interest in similar futures-based products. The Solana futures ETF from Volatility Shares, for instance, has attracted only about $5 million in net assets since its March debut.
As regulators in Canada forge ahead with staking-enabled products, the U.S. continues to tread carefully—highlighting the widening gap in crypto ETF innovation between the two markets.
Whether Canadian investors will embrace Solana ETFs and whether U.S. regulators will warm to staking in Ether funds may serve as bellwethers for the future of altcoin ETFs globally.
