Canada approves trading of first spot solana ETFs, beating US in altcoin ETF race
Canada was also the first to list a spot bitcoin ETF.
Tomorrow, Canada will be the first country to allow the trading of spot Solana ETFs. The Ontario Securities Commission approved trading of several of them, including from Purpose, Evolve, CI, and 3iQ, which Bloomberg analyst Eric Balchunas first reported.
Solana is the sixth-largest crypto by market cap, at $68.2 billion, according to CoinGecko. It’s also the blockchain behind many meme coins, such as $TRUMP.
Purpose Investments put out a press release on the Purpose Solana ETF, “the world’s first spot Solana ETF,” which will start trading on the Toronto Stock Exchange on April 16. The product “is designed to offer direct spot exposure to Solana along with attractive staking rewards.”
Canada’s move could bode well for the slew of similar spot solana ETF filings in the US, which are pending SEC approval.
Chris Chung, founder of solana-based swap platform Titan, said Canada’s decision was no surprise.
“What is surprising is that new ETFs will engage in staking, an industry first and something both the US and Canada have been very cautious about until now,” Chung said. “While the SEC is still dragging its feet on the question of staking in ethereum ETFs, this could be the test case they need to give the green light. “
Staking essentially involves “locking up” cryptocurrency and earning rewards in return for helping to secure the blockchain. You can think of it as similar to locking up your money in a bank CD to earn interest.
Chung also said that Canada has historically led the way on spot crypto ETF approvals, with a spot bitcoin ETF (which was also a Purpose product) launched years before the US finally caught up.
“It certainly won’t take years this time, though,” Chung said. “No one wants to lose their competitive edge, and now, Canada has just upped the stakes by approving staking. The race is on now.”
