Solana (SOL) ETFs Coming to Canada as the OSC Approves New Products

The OSC's green light for these ETFs follows regulatory changes that were outlined in January, allowing publicly traded funds to hold cryptocurrencies.

The Canadian Securities Exchange (CSE) has given the thumbs up to Harvest to launch three Solana (SOL) exchange-traded funds (ETFs), marking a significant step in expanding digital asset investment options.

This approval follows recent regulatory shifts that were announced in January, paving the way for publicly traded funds to invest in cryptocurrencies.

While Canada is adding these Solana ETFs, the U.S. is yet to approve similar products for the altcoin. In the U.S., several firms—including Grayscale, Bitwise, and VanEck—have submitted applications to launch spot Solana ETFs. However, they are still pending approval from the Securities and Exchange Commission (SEC).

Unlike in Canada, U.S. crypto ETFs cannot currently stake digital assets, like Solana, to generate extra yield.

The launch of the Solana ETFs in Canada comes with increasing interest in crypto ETFs in general. Bitcoin and Ether ETFs have been mopping up billions in assets, with Bitcoin ETFs recently hitting new records.

However, analysts are advising caution. Despite the hype around altcoin ETFs, an analyst at crypto bank Sygnum recently told Blockworks that it’s unclear how much investor demand there will be for the new products.

Canadian investors will soon have more ways to invest in Solana with the approval of three Harvest Solana exchange-traded funds by the Canadian Securities Exchange (CSE).

The approval of the Harvest Solana High Networth Covered Warrant ETF (CRYPTO:HSNW.U), Harvest Solana Index ETF (CRYPTO:HSON.U), and the Harvest Ultra Short Contango Covered Warrant ETF (CRYPTO:HSWL.U) follows recent regulatory changes that were announced in January, allowing publicly traded funds to hold cryptocurrencies.

These Harvest Solana ETFs are being launched as the U.S. is still in the process of approving similar products for the altcoin.

Earlier this year, Grayscale, Bitwise, and VanEck were among the firms to submit applications to launch spot Solana ETFs with the SEC. However, they are still awaiting approval.

Unlike in Canada, U.S. crypto ETFs are currently not allowed to stake digital assets, like Solana, for additional yield. In the U.S., Harvest is also applying to launch Bitcoin (BTC) and Ether (ETH) ETFs.

The launch of the Solana ETFs in Canada comes with increasing interest in crypto ETFs in general.

Bitcoin and Ether ETFs have been cutting through the milestones and attracting billions in assets, with Bitcoin ETFs recently hitting new records.

However, analysts are advising caution. Despite the hype around altcoin ETFs, an analyst at crypto bank Sygnum recently told Katalin Tischhauser that it’s unclear how much investor demand there will be for the new products.

“There is a lot of excitement around new altcoin ETFs, but we need to remember that investors aren’t necessarily interested in these coins yet,” Tischhauser said.

“People are used to investing in mega-cap tech stocks, and they might not be ready to invest in smaller altcoins in the same way.”

New entrants in the Canadian ETF space will be closely watched to see how they perform in comparison to the Bitcoin or Ether ETFs, which have already become behemoths in the Canadian ETF market.