North America’s first spot Solana ETFs officially began trading in Canada this week, marking a pivotal advancement in the region’s rapidly evolving cryptocurrency investment landscape. The launch underscores Canada’s continued leadership in bringing regulated, accessible crypto investment vehicles to retail and institutional investors alike.
Four major asset managers—3iQ Corp., Evolve Funds Group Inc., CI Global Asset Management (CI GAM), and Purpose Investments—have each introduced Solana-based exchange-traded funds (ETFs) on the Toronto Stock Exchange (TSX). This follows regulatory approval from the Ontario Securities Commission (OSC), which greenlit the funds’ access to direct exposure of Solana (SOL), the world’s sixth-largest cryptocurrency by market cap.
While two Solana futures ETFs launched in the U.S. earlier in the year, those products offer only indirect exposure through futures contracts. In contrast, Canada’s new offerings provide direct spot exposure, allowing investors to benefit from real-time price movements of SOL tokens. This positions Canadian markets ahead of their U.S. counterparts, where similar spot ETF applications await approval from the Securities and Exchange Commission (SEC).
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Canada has consistently led in crypto innovation, having launched the world’s first spot Bitcoin ETF in 2021 and later being among the first to introduce spot Ether ETFs. The latest move reinforces its reputation as a forward-thinking jurisdiction for digital asset regulation and financial product development.
“Canada is leading once again in the crypto space,” said Vlad Tasevski, Chief Innovation Officer at Purpose Investments. “We’re proud to be at the forefront of delivering secure, transparent, and regulated access to high-potential blockchain assets like Solana.”
What Is Solana?
Launched in 2020, Solana is a high-performance public blockchain designed to support decentralized applications (dApps), smart contracts, and fast, low-cost crypto transactions. Its native token, SOL, powers network operations including transaction fees and staking rewards.
Solana stands out for its exceptional throughput—capable of processing thousands of transactions per second—making it a preferred platform for developers building in areas like decentralized finance (DeFi), non-fungible tokens (NFTs), gaming, and Web3 infrastructure.
“Solana supports multiple verticals—NFTs, gaming, decentralized storage, and payments—all running on a scalable, efficient network,” said Geraldo Ferreira, Senior Vice-President and Head of Investment Products at CI GAM.
Despite its strengths, Solana has faced criticism over past network outages and security breaches, raising questions about trade-offs between speed and reliability. Additionally, like all cryptocurrencies, SOL is highly volatile, with prices influenced by regulatory news, macroeconomic trends, technological upgrades, and market sentiment.
Notably, Solana has also become a hub for meme coins—digital tokens often driven by community hype—such as the Trump-themed $TRUMP token. While speculative, these assets highlight the platform’s growing cultural and financial relevance.
How Do the New Solana ETFs Work?
The four newly launched ETFs—3iQ Solana Staking ETF (TSX: SOLQ), Evolve Solana ETF (TSX: SOLA, SOLA.U), CI Galaxy Solana ETF (TSX: SOLX), and Purpose Solana ETF (TSX: SOLL)—all provide direct ownership of physical SOL tokens, ensuring investors gain true spot exposure rather than synthetic or futures-based returns.
“The underlying asset is the same across all funds—we’re all holding actual Solana,” said Elliot Johnson, CIO and COO at Evolve. “The differences lie in how we structure staking, fees, and investor access.”
A key feature shared by all four funds is staking integration. By staking a portion of their SOL holdings, these ETFs earn additional tokens as rewards—a mechanism that enhances long-term returns while contributing to network security.
Staking involves locking up cryptocurrency to help validate transactions on proof-of-stake blockchains like Solana. In return, participants receive yield in the form of newly minted tokens.
“Imagine starting with one SOL per share,” explained Josh Deems, Head of Sales at Figment, a leading staking provider partnered with 3iQ. “Over time, staking rewards increase the total pool of SOL within the fund—meaning shareholders effectively own more SOL without buying more shares.”
Key Differences Among the ETFs
While structurally similar, the funds differ in several important ways:
- Staking Strategy: Evolve plans to stake up to 50% of its holdings initially. CI GAM retains up to 35% of staking rewards as management incentive, passing at least 65% to investors.
- Fees: 3iQ offers a 0% management fee for the first year (potentially longer), then 0.15%. CI GAM waived fees until July 16 before applying a 0.35% rate. Evolve has waived fees through 2025 (1.00% starting 2026). Purpose charges a flat 0.39%.
- Infrastructure: 3iQ uses Figment as its third-party staking provider to ensure separation between asset management and validation duties. Purpose leverages its proprietary in-house validator system to reduce costs.
- Currency Options: Purpose offers Canadian-dollar-hedged (SOLL), non-hedged (SOLL.B), and U.S.-dollar units (SOLL.U)—ideal for investors seeking protection against FX volatility.
- Pricing Mechanism: Evolve bases its net asset value on the CME CF Solana-Dollar Reference Rate—a trusted daily benchmark for SOL’s U.S. dollar price.
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What’s Next for Solana ETFs?
Market sentiment around Solana remains optimistic. With increasing global interest in blockchain innovation—and potential pro-crypto regulatory shifts under discussion in the U.S.—analysts believe Solana is well-positioned for growth.
Elliot Johnson of Evolve sees broader implications: “If the U.S. advances clearer crypto regulations, it sets a global tone. That clarity benefits innovators—and assets like Solana stand to gain significantly.”
Geraldo Ferreira of CI GAM confirmed international demand, noting inquiries from investors as far as Taiwan: “This isn’t just a Canadian story. There’s genuine global interest—similar to what we saw with Ethereum ETFs.”
Still, should the SEC approve U.S.-based spot Solana ETFs, some capital may shift southward, mirroring trends seen during the Bitcoin ETF rollout. However, Canadian products are expected to retain strong domestic appeal.
“We manage nearly $2 billion in digital assets in Canada,” Ferreira noted. “Even with U.S. entries, there will remain substantial local demand.”
Greg Benhaim of 3iQ added: “For now, Canada leads—not just in timing but in product design and investor protection.”
Frequently Asked Questions (FAQ)
Q: Are these the first spot Solana ETFs in the world?
A: No. While they are North America’s first, Brazil launched the world’s first spot Solana ETF earlier.
Q: Do these ETFs hold actual Solana tokens?
A: Yes. All four funds hold physical SOL, providing true spot market exposure.
Q: How does staking work within these ETFs?
A: A portion of the fund’s SOL is staked on the network to earn rewards. These additional tokens increase the fund’s total holdings over time, benefiting shareholders.
Q: Are there risks associated with staking?
A: Yes. Staking can involve liquidity lockups and smart contract risks. However, reputable providers use secure infrastructure to mitigate these concerns.
Q: Will U.S. investors be able to access these Canadian ETFs?
A: Generally not directly due to regulatory restrictions. U.S. investors await SEC approval for domestic spot Solana ETFs.
Q: How do management fees impact returns?
A: Lower fees mean more of the fund’s gains go to investors. Fee waivers during early stages can enhance short-term performance.
Canada’s launch of spot Solana ETFs represents a milestone in crypto finance—blending innovation, regulation, and investor accessibility. As global interest grows and regulatory clarity improves, such products may soon become standard components of diversified portfolios.
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