- Canada is set to welcome its first spot SOL ETF with a staking provision.
- A Bloomberg analyst stated that XRP ETFs could outshine the spot SOL ETFs.
First spot Solana [SOL] ETF (exchange-traded fund) will debut this week in Canada on the 16th of April, according to Bloomberg’s senior ETF analyst Eric Balchunas.
In an X (formerly Twitter) post on the 14th of April, citing an investor’s note, Balchunas stated,
“Canada is readying spot Solana ETFs to launch this week after regulator gave green light to multiple issuers incl Purpose, Evolve, CI, and 3iQ. ETFs will include staking via TD.”
Source: X
SOL vs. XRP ETFs
In addition, the products will have staking provisions.
At the time of writing, Solana staking fetched an 8% annualized yield, nearly triple the ETH staking rewards. It remains to be seen how the staking rewards will boost product demand.
Source: Staking Rewards
However, Balchunas downplayed the product’s potential performance, highlighting the strong interest in the U.S.-based Tecrium XRP ETF. Comparing U.S.-based SOL and Ripple [XRP] ETFs, Balchunas said,
“FWIW, the 2 Solana ETFs in U.S. (which track futures so not a perfect guinea pig) haven’t done much. Very little in AUM. The 2x XRP already has more AUM than both the Solana ETFs and it came out after.”
He added,
“Wouldn’t read a ton into it, but it’s our first look at the alt coin race.”
That said, several issuers, including Grayscale, have applied for U.S. spot SOL ETFs. The potential deadline for the SEC decision on the products could be between May and October 2025.
Source: Coinalyze
Meanwhile, the ETF update saw a slight uptick in spot demand, as shown by the slight surge in spot CVD (Cumulative Volume Delta).
Additionally, the Open Interest (OI) rate surged minimally from $2.30B to $2.38B, suggesting that speculative interest in the derivatives market wasn’t aggressive after the update.
Despite the lukewarm demand, SOL’s price was back above its 2024 yearly support of $120. Should the support hold, the altcoin could eye $140 or $160 levels.
Source: SOL/USDT, TradingView
