Canary Capital Joins SEC Race for First U.S. Solana ETF

A new contender has entered the race to launch the first spot Solana exchange-traded fund (ETF) in the U.S., as Canary Capital recently submitted its application to the Securities and Exchange Commission (SEC). The filing, which follows the firm’s proposals for XRP and Litecoin funds earlier in the month, signals heightened interest in Solana-based ETFs, with major players like VanEck and 21Shares already waiting in line for SEC approval.

The proposed Canary Solana ETF would allow investors to gain exposure to SOL, Solana’s native asset, without needing to hold cryptocurrency directly. This vehicle, if approved, would operate on stock exchanges, offering accessibility to the fast-growing Solana ecosystem. Solana’s blockchain supports decentralized applications, DeFi platforms, and a growing range of digital assets, earning it the title of a primary Ethereum competitor due to its efficiency and low-cost transactions. With SOL’s market cap nearing $82 billion and an impressive 400% price increase over the past year to $175, interest in Solana-based investments has surged.

“Solana’s resilient performance and its strong DeFi environment have firmly positioned it as a front-runner in decentralized applications," Canary Capital stated. The firm highlighted Solana’s high transaction rates, consistent active user growth, and accessible fee structure as key advantages over competitors. Future expansion in stablecoin activity could further solidify Solana’s place as a leader, according to Canary.

Founded in Nashville just last month, Canary Capital aims to cater to institutions by offering comprehensive crypto management and trading solutions. The SEC’s recent approvals for Bitcoin and Ethereum ETFs have set a promising precedent, though analysts believe Solana ETFs may take longer to get a green light, given the regulatory hurdles and the SEC's past stance on SOL as an unregistered security. The upcoming U.S. elections and the uncertain future of SEC Chair Gary Gensler’s leadership may also influence the timeline for any approvals.

VanEck and 21Shares, having filed their applications back in June, are also vying to bring Solana ETFs to the U.S., where they already offer Bitcoin and Ethereum funds. As competition for the Solana ETF market intensifies, the prospect of bringing Solana’s potential to mainstream investors remains a compelling focus for these asset managers.