Stake Your Claim: Solana ETFs Now Available to Canadian Investors
Four Canadian issuers launch spot Solana ETFs with staking, offering easier access and yield opportunities for investors.
With the expansion of the digital asset landscape, individuals' ability to gain exposure to this asset class within their portfolio is increasing. Last week, four ETF issuers, CI Asset Management, Purpose Investments, 3iQ Corp., and Evolve Funds Group Inc., each launched spot Solana (SOL) exchange-traded funds (ETFs) with staking capabilities.
Solana Explained
Solana is an open-source blockchain designed to enhance transaction speeds while maintaining security and privacy. SOL is the native cryptocurrency on the Solana network. Any projects or assets that operate on the Solana network need SOL for continuity; as such, users of the Solana network need to buy and use SOL. Beyond a means of transaction, SOL is distributed as a reward for validating transactions, used as payment in the buying and selling of NFTs, and used in decentralized apps.
Differentiating Solana from Bitcoin and Ethereum
Solana shares similarities with Ethereum, as both are blockchain platforms that enable decentralized applications, while Bitcoin functions primarily as a digital currency and a store of value. The rapid transaction speeds of Solana provide it with an advantage over Ethereum for applications that demand quick processing, like NFTs.
Solana Staking
Solana staking is the process of locking up SOL tokens to help secure the network and earn rewards. When individuals stake their SOL, they delegate it to a validator who processes transactions and maintains the blockchain. Validators are chosen to create new blocks based on how much SOL is staked with them, encouraging honest behavior. Individuals keep ownership of their tokens while staking and can un-stake them later if they choose. In return for helping secure the network, you earn a portion of the staking rewards, typically paid in SOL.
Solana ETFs
As mentioned earlier, four Canadian ETF issuers recently launched Solana ETFs. The newly launched funds and their respective investment objectives are detailed below.
CI Global Asset Management launched the CI Galaxy Solana ETF (Tickers: SOLX.B/SOLX.U), which provides investors with exposure to Solana through an institutional-quality fund platform. The ETF will invest directly in SOL with its holdings priced based on the Bloomberg Galaxy Solana Index, which is designed to measure the performance of a single SOL traded in U.S. dollars. The Solana Index is owned and administered by Bloomberg Index Services Limited.
SOLX was launched with a management fee of 0%, as CI GAM is fully waiving the management fee of 0.35% until July 16, 2025.
Purpose Investments launched the Purpose Solana ETF (Ticker: SOLL/SOLL.B/SOLL.U) which invests in and holds substantially all of its assets in long-term holdings of Solana in order to provide investors with a secure, convenient, lower-cost alternative to a direct investment in Solana. The Purpose Solana ETF is uniquely coupled with native staking yield powered by Purpose's proprietary in-house staking infrastructure – a feature designed to deliver the highest staking rewards currently available to investors.
SOLL's management fee is 0.39% across all its offerings.
3iQ Corp. launched the 3iQ Solana Staking ETF (Ticker: SOLQ/SOLQ.U), which seeks to provide investors with exposure to the digital asset Solana and the daily price movements of the U.S. dollar price of SOL, and the opportunity for long-term capital appreciation.
SOLQ was launched with a management fee of 0% for the first 12 months. As noted in the press release accompanying this launch, Skybridge, an alternative asset manager, made a $50 million lead investment in the fund.
Evolve Solana ETF (Tickers: SOLA/SOLA.U), which provides exposure to the daily price movements of the U.S. dollar price of Solana while experiencing minimal tracking error. SOLA will invest in long-term holdings of Solana, purchased through Coinbase and/or other reputable Solana trading platforms and OTC counterparties, in order to provide investors with a convenient, secure alternative to a direct investment in Solana.
SOLA was launched with a management fee of 0%, with Evolve fully waiving the management fee until December 31, 2025.
Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.
