Canary Advances Solana ETF Proposal with Staking Strategy Update

Canary Capital Group has updated its proposal for a spot Solana ETF, now named the "Canary Marinade Solana ETF." The amended S-1 filing with the SEC introduces a strategy to generate additional yield through staking.

The fund's primary goal is to track Solana's price, enabling investor exposure via traditional brokerage accounts.
BitGo Trust Company will serve as the custodian, while Marinade Finance will be the exclusive staking provider.
The ETF will not only hold SOL but also use it to earn network rewards through staking, potentially enhancing returns.
Staking involves using Marinade’s protocol, with BitGo maintaining control over private keys of staked SOL.
This approach aligns with growing interest in leveraging Solana's native yield, as seen with a $500 million Solana treasury recently created.

Investors should note potential risks, such as future implementation of slashing penalties on the Solana network and liquidity risks from staking lock-up periods. Canary Capital is also pursuing spot ETFs for HBAR and Litecoin.