Canada Increases Support for Crypto Adoption! Announces Staking Rewards for Solana ETF Holders

Canada has once again positioned itself at the forefront of blockchain innovation. Starting April 16, the country will officially launch the world’s first spot Solana ETF (exchange-traded fund) — and with an extra twist: it comes with staking rewards. 

This marks a major milestone not only for Solana (SOL) holders but also for institutions and everyday investors seeking more than just passive crypto exposure.

Approved by the Ontario Securities Commission (OSC), these ETFs are being rolled out by four well-known issuers — Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ. 

What sets these Solana ETFs apart is their ability to earn passive income through staking, a feature that has been noticeably absent from similar products in other markets.

A Game-Changer for Solana ETF Investors

Unlike traditional ETFs that simply track the price of a digital asset, these new Canadian Solana ETFs will hold SOL tokens directly and participate in the Solana network’s staking mechanism. 

This means investors will not only benefit from the potential appreciation in the price of SOL but also receive staking rewards, effectively turning a static investment into a yield-generating asset.

The ETFs will follow different Solana-based indices, offering diversification in strategies while remaining anchored to the blockchain. 

According to Bloomberg senior ETF analyst Eric Balchunas, this is the first time that spot ETFs have been approved to integrate staking features, potentially offering higher returns than Ethereum staking ETFs.

This innovative design could offset management fees and enhance net returns for ETF holders, making crypto investments more attractive and accessible — especially to those who don’t want to manage wallets or delegate tokens manually.

Read also: Can SOL Go Up Again? Looking at the 100% Price Gain Potential in 2025

A Signal of Regulatory Maturity

Canada has long been seen as a progressive regulator when it comes to crypto. The country was the first to approve spot Bitcoin and Ethereum ETFs, years before the United States even began serious regulatory discussions. 

Now, Canada’s introduction of staking-enabled Solana ETFs further cements its place as a global leader in crypto-financial products.

The Staking Rewards Watchdog — an industry group monitoring yield-related crypto instruments — has applauded the move, stating that it reflects a well-thought-out approach to blending DeFi (decentralized finance) concepts with traditional finance (TradFi) structures.

Though the details of how staking will be technically implemented in these ETFs remain partially undisclosed, the documentation reportedly includes mentions of TD Bank, suggesting their involvement in fund-related communications. 

However, Balchunas clarified that TD is not the staking provider nor the custodian for these funds — signaling that more specialized crypto custodians will likely handle the actual staking process.

Read also: Is Solana Better Than Ethereum? According to This Data!

While the US Lags Behind, Canada Pushes Forward

On the other side of the border, the United States is still playing catch-up. No spot altcoin ETFs have been approved beyond Ethereum, and the only Solana ETFs available in the US are futures-based — products that, according to Balchunas, have failed to attract significant investor interest or build notable assets under management (AUM).

Interestingly, a 2x leveraged XRP ETF recently launched in the US has already outperformed Solana futures ETFs in terms of AUM. 

This contrast underscores the growing gap between regulatory environments in North America and could increase pressure on US regulators to reconsider their cautious stance on spot altcoin ETFs.

If the Canadian launch proves successful — especially with the added benefit of staking rewards — it may become a powerful example of how progressive regulation can fuel both innovation and investor satisfaction.

FAQ

Q1: What is a Solana ETF?
A Solana ETF is a financial product that lets investors gain exposure to Solana (SOL) without directly buying or managing the tokens. In this case, the ETF actually holds SOL tokens and tracks their price.

Q2: What are staking rewards in an ETF?
Staking rewards are earnings generated by participating in Solana’s proof-of-stake network. In Canada’s new Solana ETFs, these rewards will be distributed to investors, offering a passive income stream.

Q3: Who approved the Solana ETFs in Canada?
The Ontario Securities Commission (OSC) approved the launch, allowing four major firms — Purpose, Evolve, CI Global Asset Management, and 3iQ — to issue the ETFs.

Q4: Why is this significant compared to US offerings?
In the US, only futures-based Solana ETFs are available, which do not offer staking or direct token exposure. Canada’s spot ETFs provide real-time price tracking and passive rewards, setting a new standard.

Q5: Will other countries follow Canada’s lead?
If the Canadian Solana ETFs gain popularity and deliver strong returns, it could encourage regulators in other countries — including the US — to explore similar crypto-financial products.