Canada again set to beat US to milestone crypto ETF launch
Four firms prepare their launches on the Toronto Stock Exchange while the SEC mulls proposals
Satheesh Sankaran/Shutterstock and Adobe modified by Blockworks
This is a segment from the Forward Guidance newsletter. To read full editions, subscribe.
Canada is leading the way again — this time on spot solana ETFs.
Such products from Purpose Investments, Evolve, 3iQ, and CI Global Asset Management are set to debut Wednesday on the Toronto Stock Exchange.
Crypto ETF milestones in Canada are not new. In case you forgot, Purpose launched the world’s first bitcoin ETF backed by physically settled bitcoin in February 2021. Other issuers in the country brought their own products to market shortly after.
Canadian securities regulators cleared spot ether ETFs just two months after the first bitcoin funds hit the market.
As you probably know, the SEC didn’t greenlight spot bitcoin and ether ETFs until 2024.
Fast forward to today, and despite a crypto-friendly president, Congress, and SEC helping the US catch up to the rest of the world, Canada has won the race to wrap yet another crypto asset into a familiar financial vehicle.
I spoke with 3iQ when the firm filed for a solana fund last summer; VanEck proposed a spot solana ETF in the US around the same time. While other US issuers have since followed, the SEC may be patient, as CME SOL futures contracts just went live last month.
It’s also worth mentioning that ether ETFs in Canada and elsewhere stake a portion of the ETH they hold. The US ether funds do not, and the SEC continues mulling proposals to allow those ETFs to start doing so.
SEC Commissioner Hester Peirce noted in a February statement that “the commission may have to make progress on custody and other issues” before allowing these changes to existing ETFs.
Back to the solana funds: Evolve said in a Monday release that it intends to initially stake up to half of the portfolio’s SOL. As we mentioned yesterday, the firm touted its initial 0% management fee (through the end of 2025).
Purpose noted that staking would be powered by its in-house validator infrastructure, eliminating third-party costs. CI’s fund is subadvised by Galaxy Asset Management, a spokesperson told me. Galaxy is set to facilitate staking arrangements for the fund.
A 3iQ spokesperson confirmed that the company anticipates the launch of its solana ETF this week, but declined to comment further.
Let the race for assets begin.
Get the news in your inbox. Explore Blockworks newsletters:
- The Breakdown: Decoding crypto and the markets. Daily.
- 0xResearch: Alpha in your inbox. Think like an analyst.
- Empire: Crypto news and analysis to start your day.
- Forward Guidance: The intersection of crypto, macro and policy.
- The Drop: Apps, games, memes and more.
- Lightspeed: All things Solana.
- Supply Shock: Bitcoin, bitcoin, bitcoin.
