Solana ETFs Will Launch in Canada
Spot Solana exchange-traded funds (ETFs) are expected to debut in Canada on April 16, according to Bloomberg analyst Eric Balchunas.
In an April 14 post on X, Balchunas shared a private client note from TD Bank indicating that the Ontario Securities Commission (OSC) has approved asset managers Purpose, Evolve, CI, and 3iQ to launch ETFs backed by Solana (SOL).
Canada lacks a central securities authority, with each province and territory enforcing its own regulatory framework.
The Toronto Stock Exchange falls under the jurisdiction of Ontario’s OSC.
The ETFs will reportedly be allowed to stake a portion of their SOL holdings to generate additional yield.
Balchunas noted that these upcoming products represent “our first look at the alt coin race.”
The OSC confirmed to Cointelegraph that the approval and regulation of SOL ETFs align with a notice issued in January that revised rules for publicly traded cryptocurrency funds.
In the United States, the Securities and Exchange Commission (SEC) has acknowledged multiple filings to list ETFs for altcoins, though it has so far only approved spot ETFs for Bitcoin and Ethereum.
Staking remains prohibited for U.S.-based crypto ETFs. Bloomberg’s James Seyffart suggested that Ether ETFs may be permitted to begin staking by May, though the timeline could extend.
That said, investor interest in altcoin ETFs may be lower than for Bitcoin and Ethereum.
Katalin Tischhauser, head of research at crypto bank Sygnum, told Cointelegraph in August that despite market hype, it’s unclear where significant demand would come from.
In March, asset manager Volatility Shares launched the first Solana-linked ETFs in the U.S. using financial derivatives.
Its Solana ETF (SOLZ) has attracted modest interest, with net assets around $5 million as of April 14.
Balchunas pointed out that the two Solana ETFs in the U.S. — which track futures, not spot prices — have shown limited traction and were outpaced in assets under management by the newer 2x XRP ETF.
He added that he “[w]ouldn’t read a ton into it” in terms of predicting demand for spot SOL ETFs.
Sources:
https://cointelegraph.com/news/spot-solana-etfs-launch-in-canada-this-week
https://www.osc.ca/sites/default/files/2024-01/csa_20240118_81-102_rfc_crypto-assets.pdf
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