Canada Front-Runs U.S. as Spot Solana ETFs Hit Toronto Stock Exchange

While the entire crypto industry waits with bated breath for the SEC’s verdict on Solana ETF approval, the Ontario Securities Commission has beaten them to market.

As many as four Canadian firms, including Purpose, Evolve, CI, and 3iQ, have been given the nod, with Solana ETF trading going live on the Toronto Stock Exchange at 9.30 AM ET, April 16.

Which staking providers are powering North America’s first Solana ETFs, and what are the implications of staking's inclusion in the funds?

Canadian TradFi Firms Beat U.S. to Solana ETF Launch

On April 14, Bloomberg Senior ETF Analyst Eric Balchunas revealed the Ontario Securities Commission had given Canadian TradFi firms the green light to list Solana ETFs.

Solana ETF trading in Canada will begin at 9.30 AM ET, with listings from Purpose, Evolve, CI, and 3iQ beating out their southern rivals across the border. In addition to launching Solana ETFs before the U.S., Canada’s ETFs will also be incorporating staking rewards into the funds, a feature that has so far eluded U.S.-based ETFs tracking Proof-of-Stake assets.

“At 3iQ, we are proud to continue our tradition of innovation by launching one of the world's first Solana staking ETFs. This product builds off 3iQ's world-first Ether Staking ETF launched in 2023 in providing secure, regulated access to native yield from digital assets. We are delighted to introduce this product in partnership with Figment, a proven leader in institutional staking infrastructure. This collaboration allows us to build on our reputation as being the first to launch ground-breaking investment products and reinforces our commitment to aligning with top-tier partners who share our vision for unlocking the full value of the digital asset ecosystem.” - Pascal St-Jean, 3iQ President and CEO

Chris Chung, founder of Titan Exchange, an emerging Solana-based DEX aggregator, has argued that the OSC’s seal of approval could be the guiding nudge the U.S. SEC needs to approve its own Solana ETF applications.

“The news that Ontario Securities Commission (OSC) has approved the world’s first spot Solana ETFs is no surprise - they were really just waiting for the United States to approve the first futures trading product. What is surprising is that new ETFs will engage in staking - an industry first and something both the US and Canada have been very cautious about until now.

This shows that financial institutions aren’t playing around with crypto anymore - they’re serious now. And while the US Securities and Exchange Commission (SEC) is still dragging their feet on the question of staking in ETH ETFs, this could be the test case they need to give the green light. 

Canada has historically led the way on spot crypto ETF approvals, with a spot BTC ETF launched years before the US finally caught up. It certainly won’t take years this time, though. No one wants to lose their competitive edge, and now, Canada has just upped the stakes by approving staking. The race is on now.” - Chris Chung, Titan Exchange Founder

Canadian Bitcoin and Ethereum ETFs have witnessed billions of dollars worth of inflows. While unlikely to enjoy the same level of interest as Bitcoin, Canada’s upcoming Solana ETFs could reasonably expect to see 8 figures in NAV, based on the success of other crypto ETFs.

Figment Selected to Power 3iQ Staking

Joining forces with their Canadian brothers-in-arms, 3iQ has collaborated with Figment to manage staking operations for its Solana ETF ($SOLQ). As one of Solana’s genesis validator operators, Figment has amassed over 7M $SOL in network stake, and also powers a second Top 10 validator through Ledger.

With over $15 billion in assets staked across more than 40 protocols, Figment claims its institutional-grade staking infrastructure and security measures make it a reliable option for staking-enabled ETF products.

"As a genesis validator in the Solana ecosystem, Figment is uniquely positioned to power this groundbreaking ETF. By combining institutional-grade staking infrastructure with traditional investment vehicles, we're making sustainable staking yields accessible to a new class of Investors." - Lorien Gabel, Figment CEO and Co-founder.

While Canada’s financial landscape may not carry the same weight as its U.S.-based counterparts, Canadian TradFi is often ahead of the curve. Ethereum staking ETFs were listed in Canadian markets long before basic Bitcoin and Ethereum ETFs got a nod of approval from the U.S. SEC.

If Canadian TradFi lives up to its status as a trendsetter, Solana ETFs in the U.S. might be a reality sooner rather than later.

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