Solana ETF Will Launch in Canada! Will This Help Make SOL Bullish?

The rise of cryptocurrency exchange-traded funds (ETFs) has transformed how traditional investors gain exposure to digital assets. 

From Bitcoin to Ethereum, ETFs have provided simplified access to crypto markets without the need to manage wallets or navigate decentralized platforms. 

Now, Solana (SOL)—one of the most scalable and energy-efficient blockchains—is stepping into the spotlight. With Canada poised to launch the world’s first spot Solana ETFs, investors and analysts alike are questioning: could this be a defining moment for SOL?

Canada Gives the Green Light to Solana ETFs

In a major move for the crypto investment landscape, Canada is set to debut the first-ever spot Solana ETFs (exchange-traded funds) with integrated staking options. 

According to Bloomberg’s senior ETF analyst Eric Balchunas, the ETFs will go live on April 16, 2025, through major issuers including Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ. 

These ETFs will be offered with staking rewards facilitated via TD—a unique feature currently absent in other mainstream crypto ETFs.

This marks a significant moment for the Solana (SOL) ecosystem, as it joins the growing list of altcoins making their way into institutional investment vehicles. The inclusion of staking adds a layer of utility and passive income potential for investors, setting these ETFs apart from typical offerings.

“Canada is readying spot Solana ETFs to launch this week after the regulator gave the green light to multiple issuers,” Balchunas posted on X (formerly Twitter).

Read also: Solana Faces Volatility as Sentiment Shifts Ahead of Major Unlock

The Power of Staking: Boosting Investor Appeal?

One key feature that distinguishes these Solana ETFs is their staking capability. At the time of writing, SOL staking yields around 8% annualized returns, significantly higher than Ethereum’s average of 3%. 

This staking yield could potentially increase product demand among investors looking for passive income through ETF structures.

Offering staking within an ETF is relatively novel and could revolutionize how investors approach proof-of-stake cryptocurrencies. 

With Solana’s robust DeFi ecosystem and active validator network, ETF holders could benefit from both price appreciation and staking income—without needing to understand the technical process themselves.

SOL vs. XRP ETFs – A Competitive Outlook

Despite the innovation behind Canada’s Solana ETFs, Eric Balchunas offered a more cautious view. He referenced the U.S.-based XRP ETFs, especially the Teucrium XRP ETF, which has already accumulated significant assets under management (AUM) since launch.

“The 2 Solana ETFs in the U.S. (which track futures, so not a perfect comparison) haven’t done much. Very little in AUM. The 2x XRP already has more AUM than both Solana ETFs combined, and it came out after,” Balchunas said.

While this may seem like a pessimistic take, it underscores the ongoing competition among altcoins in the ETF race. 

It also reflects a broader investor sentiment that may favor established names like XRP, which has endured legal scrutiny and emerged with stronger clarity in the U.S. regulatory environment.

U.S. Spot Solana ETF Applications Still Pending

While Canada’s regulatory approval sets a new benchmark, the United States is still evaluating multiple spot Solana ETF applications. Leading firms like Grayscale are in line, awaiting decisions from the Securities and Exchange Commission (SEC). The verdict could arrive between May and October 2025.

Approval in the U.S. would be a significant win for SOL, potentially unlocking billions in institutional demand. However, given the cautious tone around altcoin ETFs, approval is far from guaranteed. 

If successful, a U.S. spot Solana ETF could mirror the success seen in Bitcoin and Ethereum ETFs and provide a global tailwind for SOL.

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

Market Reaction and Technical Landscape

The ETF announcement prompted a mild uptick in SOL demand, as observed through a small increase in spot CVD (Cumulative Volume Delta) and Open Interest (OI) rising from $2.30B to $2.38B. This suggests modest speculative interest, though it’s far from a euphoric rally.

Despite this lukewarm response, SOL’s price recently reclaimed its 2024 support level of $120. If this support holds strong, technical analysis points to possible targets at $140 and $160, especially if broader market conditions improve or if U.S. ETF approvals follow.

Is This a Turning Point for Solana?

The launch of Canada’s spot Solana ETFs may not trigger an immediate price explosion, but it represents a major step in SOL’s institutional acceptance. 

The added utility of staking, regulatory clarity in a major Western market, and the ongoing race to U.S. ETF approval all contribute to SOL’s long-term narrative.

While analysts like Balchunas are tempering expectations by comparing Solana to XRP’s performance, it's important to consider the unique strengths of the Solana blockchain—its speed, scalability, and active ecosystem—when forecasting future interest in SOL ETFs.

Conclusion

As Canada rolls out its first spot Solana ETFs, it could mark the beginning of a broader wave of crypto investment diversification beyond Bitcoin and Ethereum. With SOL staking included, this could reshape how traditional investors interact with the Solana network.

Whether or not it becomes a market-mover like the XRP ETFs, the launch is undeniably a milestone for Solana and a sign of growing institutional curiosity about high-performance altcoins.

FAQ

What is a Solana ETF?

A Solana ETF is an exchange-traded fund that allows investors to gain exposure to Solana (SOL), a high-performance blockchain network, through traditional financial markets. It tracks the price of SOL and can include added features like staking rewards, depending on the structure of the ETF.

Are Solana ETFs launching in Canada?

Yes. Canada is launching the first spot Solana ETFs on April 16, 2025, through multiple issuers including Purpose Investments, Evolve ETFs, CI Global Asset Management, and 3iQ. These ETFs will include staking functionality, which is not typically found in other crypto ETFs.

How much can I earn from staking SOL?

As of April 2025, SOL staking yields approximately 8% annually, which is significantly higher than Ethereum’s staking yield of around 3%. These rewards will be built into the ETF returns in the Canadian products.