Demand for Canada solana ETFs has room to grow as US versions wait their turn

It is a phase from the Ahead Steerage e-newsletter. To learn full editions, subscribe.

We’ve highlighted the milestone that’s spot solana ETFs launching on the Toronto Inventory Trade, however trade watchers aren’t anticipating huge demand initially.

ETF.com analyst Sumit Roy famous that spot ether ETFs in Canada maintain about $500 million in property — roughly one-tenth of the cash in Canadian spot crypto ETFs total. The remainder resides in bitcoin merchandise.  

“We’ve seen an identical phenomenon right here within the US, the place ether ETFs have attracted a fraction of the demand that bitcoin ETFs have,” Roy advised me. “And so it’s affordable to assume that SOL, which is a fair much less in style cryptocurrency than ether, could have much less demand in turn.” 

The market cap of ether is roughly 3x bigger than that of solana — at $190 billion, in contrast to SOL’s $65 billion.

Most US buyers would possibly wait for US-listed solana ETFs earlier than searching for out that publicity, Roy added. Even then, Bloomberg Intelligence analyst James Seyffart stated frankly: “I don’t see a large wall of demand for solana ETFs right here within the US.”

Volatility Shares’ two US solana futures ETFs have simply $15 million in mixed AUM after practically a month available on the market. 

“That stated, over time, I believe SOL ETFs can grow,” Roy stated. “Solana is a vibrant blockchain that’s on the middle of the memecoin phenomenon.” 

As for once we may see spot solana ETFs within the US, Seyffart previously pinned the odds of SEC approval at 70% by the tip of the 12 months. 

He advised me this morning he nonetheless expects these funds — as properly as proposals to permit staking within the US ETH merchandise — to get the inexperienced gentle within the coming months. 

“Last deadlines for each of these issues are in October 2025, however the SEC may transfer faster in the event that they needed,” Seyffart stated. 

As famous yesterday, Canada beating the US to crypto ETFs is nothing new. Its spot bitcoin and ether ETFs launched three years earlier than related merchandise hit the US market. Heck, Canada welcomed the primary ETF ever in 1990 — three years earlier than the SPDR S&P 500 ETF (SPY) debuted within the US.   

“I don’t assume the SEC will really feel any stress from what regulators in Canada do,” Roy stated. “They may transfer to the beat of their own drum as they’ve at all times accomplished.”

Get the information in your inbox. Discover Blockworks newsletters: