Canary Capital updates SEC filing for Solana ETF with staking

Canary Capital recently revised its filing with the SEC for a Solana ETF, incorporating both holding and staking SOL tokens into its investment strategy. Initial filings for a spot SOL ETF were made in October 2024.

The Canary Marinade Solana ETF functions as an exchange-traded product, issuing shares that are tradable on the Cboe BZX Exchange. The primary objective of this ETF is to mirror the price movements of SOL held by the trust, with the secondary aim of acquiring additional SOL through staking on Solana’s proof-of-stake network. The ETF’s net asset value (NAV) is computed utilizing the CoinDesk Solana pricing benchmark.

Canary Capital Group serves as the sponsor of the Trust, while CSC Delaware Trust Company acts as the trustee, managing transfers and cash custody is entrusted to U.S. Bancorp Fund Services, and BitGo Trust Company safeguards all SOL held by the Trust.

The ETF intends to stake most of its SOL through staking providers, primarily utilizing Marinade Finance, to earn staking rewards that will augment the fund. A portion of SOL is reserved to handle redemptions, expenses, or safeguard the fund’s assets.

The Trust sets out to simplify and secure SOL investments for traditional investors, eschewing derivatives to reduce counterparty and credit risks. By doing so, it offers a straightforward, regulated avenue for investing in Solana.

The move to update filings for the Solana ETF coincides with new SEC regulations that expedite the listing process for cryptocurrency ETFs on exchanges like NYSE, Nasdaq, and Cboe.

Market analysts anticipate a robust performance from Solana as the year progresses, fueled by heightening institutional interest. Noteworthy asset management firms such as Bitwise, Grayscale, VanEck, Fidelity, and Invesco/Galaxy have submitted applications to introduce spot Solana ETPs. The SEC is slated to reach a decision by October 10, 2025, potentially paving the way for a wave of novel Solana investment products.

Solana emerges as a frontrunner in the race for ETFs, boasting 16 applications out of the 96 crypto ETF filings, positioning itself prominently in the market throughout the final quarter of the year.

The Canary Marinade Solana ETF encapsulates a growing trend of staking-enabled crypto ETFs, offering investors a compliant route to engage with Solana while reaping the benefits of staking rewards.