Canada is gearing up to introduce its first spot Solana exchange-traded funds (ETFs) on April 16, according to Bloomberg analyst Eric Balchunas.
In a post on X dated April 14, Balchunas shared details from a confidential TD Bank client note. The note revealed that the Ontario Securities Commission (OSC) has given the green light to several asset managers—Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ—to launch ETFs that will directly hold Solana (SOL).
Unlike the U.S., Canada doesn’t have a centralized securities regulator. Instead, each province and territory enforces its own rules, with Ontario’s OSC overseeing the Toronto Stock Exchange.
These ETFs will be allowed to stake a portion of their SOL holdings to generate additional yield. Balchunas noted that these listings mark a key moment in the evolution of altcoin investment products.
The OSC confirmed that this approval aligns with guidance issued in January, which updated regulations for public investment funds with crypto exposure.
U.S. Market Still on Hold
Meanwhile, the U.S. Securities and Exchange Commission (SEC) has yet to approve any ETFs for altcoins. Although it has acknowledged multiple proposals, only Bitcoin and Ether spot ETFs have been cleared so far.
Staking remains prohibited in U.S.-listed crypto ETFs. Bloomberg analyst James Seyffart suggested Ether staking ETFs could get the nod as early as May, but added that regulatory hurdles might delay the process.
Despite the buzz around altcoin ETFs, investor interest may not be as strong as expected. Katalin Tischhauser, head of research at Sygnum Bank, said in August that market enthusiasm may not translate into meaningful demand.
“There’s a lot of hype, but no one can really identify where significant investor interest is actually coming from,” Tischhauser said.
Back in March, Volatility Shares launched derivative-based Solana ETFs in the U.S., but they’ve seen limited traction. The Volatility Shares Solana ETF (SOLZ) has only attracted about $5 million in assets so far, per the company’s website.
Balchunas pointed out that the two existing Solana ETFs in the U.S.—which are futures-based—haven’t gained much ground. “Even the 2x XRP ETF, which launched later, has surpassed them in assets,” he said, while noting that this isn’t necessarily a reflection of what to expect from spot ETFs.
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