- Ontario Securities Commission approves first spot Solana ETFs, launching April 16, 2025.
- SOL ETFs include staking features for potentially higher returns compared to other crypto ETFs.
- Whale activity and U.S. ETF speculation surge following Canada’s regulatory decision.
The Ontario Securities Commission (OSC) has approved multiple spot Solana (SOL) ETFs. This has allowed several asset managers to launch direct exposure investment products starting April 16. Purpose Investments, Evolve ETFs, CI Global Asset Management and 3iQ are among the firms cleared to list these products.
These Solana ETFs will hold physical SOL tokens, not derivatives and represent the world’s first spot ETFs offering institutional and retail investors a regulated path into Solana. Each issuer will track a different index, giving investors varied strategies to gain exposure to the cryptocurrency.
New ETFs feature staking mechanisms for yield
The approved Solana ETFs come with staking features. This allows holders to earn staking rewards. While TD Bank will support the processing of staking data, it will not directly handle staking itself.
By participating in Solana’s proof-of-stake network, staking allows investors to earn rewards by locking up SOL tokens. These returns can help offset holding costs. This gives SOL ETFs a potential advantage over Ethereum-based products, which have seen delays in U.S approvals for staking.
The inclusion of staking makes these ETFs distinct from other crypto-based products. Bloomberg’s Eric Balchunas noted that staking yields could enhance the return potential of these instruments. This is particularly at a time when traditional returns remain comparatively lower.
Solana price and whale activity surge on ETF announcement
This ETF announcement comes along with Solana’s 21% rise in the last 7 days. Whale Alert data reported major movements of SOL across wallets. One transfer involved 762,416 SOL valued at approximately $101 million. Another transaction moved over 790,000 SOL worth $105 million between unidentified wallets.
This activity suggests significant anticipation around the ETFs. Institutional participants or large holders may be repositioning in advance of the product launches. These developments follow a recent trend of growing institutional engagement with Solana.
Its blockchain activity is also not left behind. According to Nansen, Solana registered over 355 million transactions in the past week, the highest among all blockchains. Santiment data also showed rising online mentions. This has made Solana one of the most discussed digital assets of late.
ETF expectations rise in U.S. following Canadian approval
Following Canada’s regulatory decision, speculation has grown about potential approval of similar products in the United States. Grayscale, VanEck, Bitwise, 21Shares and Franklin Templeton have filed for spot Solana ETFs with the U.S Securities and Exchange Commission (SEC).
Forecasting platform Polymarket places the likelihood of a U.S Solana ETF approval by the end of 2025 at 81%, up from 65% earlier this year. These expectations are backed up by growing demand for regulated crypto investment vehicles and Canada’s proactive stance.
The Canadian approval follows the recent launch of the Teucrium 2x Long Daily XRP ETF in the U.S. This indicates increasing momentum for altcoin-based exchange-traded products across major markets.
Solana’s market position strengthens
Looking at SOL technically, it has been trading below $150 for sometime now. Analysis suggests a break and close above $147 internal structure lower high, could confirm a bullish shift in market structure, pushing the price higher. However, a failure to close above this point could invalidate bullish confirmations and this might signal a drop below $120. The upcoming ETF launch is expected to play a role in determining the next movement.
Investors will gain access to these ETFs on April 16th through major Canadian exchanges. This makes Solana the third crypto to achieve spot ETF status in Canada, after Bitcoin and Ethereum.
