Canada Makes History by Being the First Country to Legalize Spot Solana Exchange-Traded Funds (ETFs) with Staking Rewards

The Ontario Securities Commission (OSC) approval marks a significant move in the crypto industry. These ETFs, which are set to start trading on April 16, 2025

Canada is making history in the cryptocurrency investment sector by being the first country to make spot Solana exchange-traded funds (ETFs) with staking rewards legal. The Ontario Securities Commission (OSC) approval of these ETFs, which are set to start trading on April 16, 2025, is a significant move in the crypto industry.

Several asset management companies, including Purpose Investments, Evolve ETFs, 3iQ, and CI Global Asset Management, have received clearance to launch their ETFs, according to an April 14 X post by Bloomberg analyst Eric Balchunas.

These ETFs will hold physical Solana (SOL) tokens and aim to offer direct exposure to the price of the cryptocurrency, which is currently trading at $131.54. They will also be able to stake some portion of their assets for higher yield.

While these ETFs are set to begin trading on April 16, they are still pending approval by the U.S. Securities and Exchange Commission (SEC).

Canada is closing the gap between traditional capital markets and decentralized finance (DeFi) by combining the regulated ETF framework with staking, or locking up cryptocurrency holdings to support blockchain operations. This approach can transform the way digital assets are brought to institutional and individual investors globally.

The incorporation of staking in ETFs is a first-of-its-kind feature. According to the memo provided by Balchunas, the ETFs will stake in Solana to generate more income. The aim is to enhance overall investor returns while also paying some of the fund’s management costs and operating expenses.

Additionally, Solana’s staking approach can be more generous with payouts compared to Ethereum-based vehicles because its network rewards are more generous. The idea is to share these proceeds with investors in a way that essentially halves the long-term price of holding the ETF.

Staking about these ETFs means investing a subset of SOL holdings into helping authenticate transactions on the Solana blockchain in return for rewards. Staking Solana not only supports the operations of the network but it also provides other incentives to investors. These incentives can increase returns overall, which would make ETFs more desirable for potential investors.

Large institutions and individual investors alike are expected to closely monitor the upcoming launch of these ETFs.

Because the launch date of April 16 is approaching, there could be SOL price volatility as soon as April 15.

Staking rewards, designed to enhance investor yield and solidify Canada’s position as a cryptocurrency innovation leader, are a significant aspect of these ETFs. Its price can increase with more interest due to this advance because of the rising interest in SOL following this news.

Moreover, Canada’s proactive approach can convince other countries’ regulatory agencies to adopt similar methods, especially with the U.S. Securities and Exchange Commission still debating whether to approve bitcoin ETFs with staking features.