Canada Launches First Staking-Enabled Solana ETFs with Four Asset Managers

Canada has launched the first Solana spot ETF with staking, approved by the Ontario Securities Commission. Four asset managers—Purpose, Evolve, CI, and 3iQ—will manage the ETF, which will invest in physical SOL long-term and stake them for additional rewards, potentially yielding better returns than Ether staking.

ETF Developments

The SEC approved a Bitcoin-pegged ETF in January 2024 but is still reviewing staking-enabled ETFs.
Bloomberg analysts predict the US may follow Canada's lead by late 2025.
Multiple cryptocurrency-backed ETF applications are pending with regulators worldwide.

Solana's Recent Performance

Solana's price has increased over 30% recently, trading at $133. The SOL/ETH pair surged over 45% since late February, indicating potential outperformance against Ether.

The current SOL setup resembles Ethereum's pattern in March 2021, suggesting a possible rise to $300.
Technical strength shows optimism among investors.

Challenges Facing Solana

Despite its potential, Solana faces scalability issues exacerbated by high traffic from successful meme coins like $TRUMP and $MELANIA, leading to transaction delays.

Introduction of Solaxy

Solaxy, a new token, aims to address these scalability problems through a Layer 2 scaling protocol that processes transactions off the main chain, enhancing throughput and speed.

This initiative seeks to merge the liquidity benefits of Ethereum with Solana's efficiency, improving overall network performance.

For more detailed analysis or investment considerations, further research is advised.