OSC Grants Green Light to Four Asset Managers
Canada is poised to debut the world’s first spot Solana (SOL) exchange-traded funds (ETFs) on April 16, offering a major step forward for altcoin-based investment products. According to Bloomberg ETF analyst Eric Balchunas, the Ontario Securities Commission (OSC) has approved four asset managers — Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ — to launch Solana ETFs that will hold physical SOL tokens.
“This is our first look at the alt coin race,” Balchunas wrote on X (formerly Twitter), adding that these ETFs will also offer SOL staking to generate yield.
Canada is readying spot Solana ETFs to launch this week after regulator gave green light to multiple issuers incl Purpose, Evolve, CI and 3iQ. ETFs will include staking via TD pic.twitter.com/FSw149Xkm4
— Eric Balchunas (@EricBalchunas) April 14, 2025
The OSC confirmed to Cointelegraph that the approval falls under new regulatory guidance released in January, allowing publicly traded crypto funds to evolve beyond Bitcoin and Ether.
Decentralized Staking Feature Sets Canada’s ETFs Apart
One unique feature of the upcoming Canadian Solana ETFs is the ability to stake SOL — a function currently prohibited under U.S. regulations. By staking, these ETFs can generate on-chain rewards, potentially offering investors additional yield beyond price appreciation.
While staking introduces technical and custodial complexities, it reflects a maturing DeFi-integrated ETF market that may appeal to more sophisticated crypto investors.
“It’s a clever way to compete with spot ETH and BTC ETFs by offering yield on top of exposure,” said one analyst familiar with Canadian ETF structures.
U.S. Still Lagging on Altcoin ETF Approvals
In the United States, the Securities and Exchange Commission (SEC) has only approved spot ETFs for Bitcoin and Ethereum, despite reviewing dozens of applications for funds tracking other altcoins.
Staking functionality is still a regulatory gray zone. While Ether ETFs with staking may be approved as early as May, Bloomberg’s James Seyffart cautions that the process could drag out for months, especially if political pressure or legal challenges arise.
The contrast highlights Canada’s more progressive and flexible crypto ETF regime, aided by its decentralized regulatory structure, where provinces like Ontario set securities rules independently.
Demand for Altcoin ETFs Remains Unclear
Despite the breakthrough, questions remain about investor appetite. Sygnum Bank’s research head, Katalin Tischhauser, expressed skepticism in a prior interview with Cointelegraph, noting that while ETF chatter is rising, “no one can point to where substantial demand is going to come from.”
The muted launch of the Volatility Shares Solana Futures ETF (SOLZ) in the U.S. may support that concern — with only $5 million in assets under management (AUM) as of April 14.
“The two Solana ETFs in the U.S. haven’t done much,” Balchunas noted. “Even the 2x XRP ETF has more AUM.”
Canada is readying spot Solana ETFs to launch this week after regulator gave green light to multiple issuers incl Purpose, Evolve, CI and 3iQ. ETFs will include staking via TD pic.twitter.com/FSw149Xkm4
— Eric Balchunas (@EricBalchunas) April 14, 2025
Still, the lackluster performance of futures-based products isn’t necessarily a predictor for spot ETF success, especially when features like staking are added.
Final Thoughts: A Milestone for Solana — and a Test for Altcoin ETFs
Canada’s approval of spot Solana ETFs with staking marks a first-mover advantage in the altcoin ETF space, but its ultimate success will depend on market adoption and performance. If investor interest materializes, it could pave the way for more multi-chain ETF products, potentially influencing U.S. regulators to follow suit.
For now, the spotlight is on April 16 — when SOL ETFs finally go live, and the altcoin ETF era begins in earnest.
