Crypto Market News: Canada Launches North America’s First Spot Solana ETF With Staking Rewards

Canada has once again taken the lead in crypto innovation, introducing North America’s first Solana (SOL) spot exchange-traded fund (ETF) that includes staking rewards. Toronto-based digital asset manager 3iQ Corp has officially filed a preliminary prospectus for “The Solana Fund (QSOL),” a product designed to give investors direct exposure to SOL’s price and earn passive income through on-chain staking.

This marks another first for Canada, which previously pioneered the world’s first spot Bitcoin and Ethereum ETFs. Now, with Solana stepping into the ETF arena, retail and institutional investors alike will have an opportunity to diversify their crypto portfolios with a regulated and reward-generating product.

Solana Exposure + Staking Yields = Next-Gen ETF

What sets The Solana Fund apart from other crypto ETFs is its integration of Solana staking directly into the investment structure. By staking the fund’s SOL holdings on-chain, investors can potentially earn between 6% and 8% annually, on top of any price appreciation from the asset itself. These rewards are expected to be reflected in the ETF’s net asset value (NAV), offering an added incentive to traditional investors seeking yield.

Staking, which is typically a technical and hands-on process for individual crypto holders, becomes completely passive with this fund. The ETF handles all the backend work, making it easier for non-technical investors to benefit from Solana’s proof-of-stake consensus model.

Backed by Trusted Names in Crypto Custody

To manage the fund’s assets securely and facilitate the staking process, 3iQ has partnered with Coinbase Custody and Canadian trust company Tetra Trust. Coinbase Custody will not only hold the SOL tokens but also provide the infrastructure needed for institutional-grade staking, ensuring both security and efficiency.

Once approved, The Solana Fund will be listed on the Toronto Stock Exchange (TSX) under the ticker symbol QSOL. It will offer both Class A and Class F units, available to investors across Canada—except for Quebec, which is currently excluded under regulatory terms.

Canada’s Ongoing Crypto ETF Leadership

Canada continues to demonstrate a progressive stance toward cryptocurrency regulation and investment. It was the first country to approve a spot Bitcoin ETF in early 2021, followed quickly by spot Ethereum products. These moves opened the floodgates for global interest in regulated crypto ETFs.

Now, by introducing a Solana spot ETF with staking rewards baked in, Canada is signaling to the world that it’s ready to support next-generation blockchain networks beyond just Bitcoin and Ethereum. Solana, known for its high-speed transactions and growing decentralized application (dApp) ecosystem, is currently the fifth-largest crypto by market cap and has rapidly become a favorite among developers and investors.

A Model for the Future?

The QSOL ETF could act as a model for future products worldwide. If successful, it may inspire asset managers in the U.S. and other regions to explore spot ETFs that offer not just price exposure but also blockchain-native rewards like staking or yield farming. As the crypto space continues to mature, products that combine traditional finance structures with on-chain benefits might be the bridge that brings mass adoption closer than ever.