Solana’s Big Pump Incoming? Canada Greenlights Staking ETFs While U.S. Delays Ethereum

Key Insights

• The US SEC has just postponed its decision on approving staking in Grayscale’s Ethereum Trust, as well as the Ethereum Mini Trust, until June 1.
• According to James Seyffart, Ethereum ETFs could get the green light for staking by May, even though it might take longer due to bureaucratic delays.
• Meanwhile, the Ontario Securities Commission (OSC) in Canada has just approved several applications for Solana ETFs in the country.
• The launch of these spot Solana ETFs in Canada will become more than just another crypto-based product on the market.

Canada has taken one more step towards innovation, while the US Securities and Exchange Commission continues to embrace caution.

So far, the US has only approved spot ETFs that merely hold Bitcoin and Ethereum.

Even then, staking remains off-limits and the SEC continues to delay decisions on the matter.

However, recent developments show that Canada is preparing to launch its first-ever Solana ETF with approved staking this week.

Here are some of the major updates to keep in mind.

Major Developments From the US

Just recently, the agency postponed its decision on approving staking in Grayscale’s Ethereuum Trust, as well as the Ethereum Mini Trust until June 1.

The final deadline still stands in October, with a possibility of another delay by June.

This delay shows the agency’s hesitation towards approving staking and whether staking-enabled ETFs would count as securities offerings.

According to James Seyffart, Ethereum ETFs could get the green light for staking by May, even though it might take longer due to bureaucratic delays.

Despite the regulatory hurdles for the staking feature in the Ethereum ETFs, BlackRock, Bitwise and other major asset managers are on the waitlist for offering similar services.

Solana ETFs Set to Debut on 16 April

While the US still drags its feet, Bloomberg analyst Eric Balchunas noted that the Ontario Securities Commission (OSC) in Canada has just approved several applications for Solana ETFs in the country.

These ETFs will be offered by several asset managers including Purpose Investments, Evolve ETFs, CI Global Asset Management and 3iQ.

Per reports, the funds will be listed on Canadian exchanges and will hold actual SOL tokens, not just derivatives.

This is a big deal for the crypto space, considering how until now, most crypto ETFs (especially in North America) have always stuck to either Bitcoin or Ethereum.

Solana’s entry into the space shows a growing interest in altcoins, and many already consider it to be the next best Layer-1 network after Ethereum.

Even more importantly, these funds will support staking and allow investors to make passive income from holding them.

Is There Enough Interest?

The next question at this point, stems from interest. Will there be genuine demand for altcoin ETFs, especially considering the relatively meager inflow of funds the Ethereum ETF makret in the US has managed to pull in since their launch last year.

Ultimately, while the excitement around new ETFs being filed is exciting, it remains unclear where demand will actually come from.

Keep in mind that in March of last year, Volatility Shares launched the first futures-based Solana ETFs in the US.

So far, these funds have only been able to attract around $5 million in net assets.

For a better perspective, the 2x leveraged XRP ETF (which launched after the Solana products) has already accumulated more inflows.

According to Bloomberg’s Eric Balchunas, this isn't necessarily a death sentence for spot SOL ETFs.

It is also not a promising sign either.

Futures-based ETFs are different from spot ETFs, but the unclear correlation between the market share of an asset and its ability to pull in inflows raises some concern about how these ETFs will perform in Canada.

In All

The launch of these spot Solana ETFs in Canada will become more than just another crypto-based product on the market.

Instead, they will represent a milestone for how crypto is viewed from a regulatory standpoint, elsewhere in the world.

Canada is so far embracing innovation and is allowing more flexibility in crypto investment vehicles.

This is while the US continues to tread carefully and might even postpone its decision once again.

The divergence between both countries is likely to have long-term implications for Solana and ETH.

As more and more Canadian exchanges begin to list these ETFs, they might attract more investors and give SOL a headstart against Ethereum for the long term.

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