Canary Capital Joins Race for First Solana Spot ETF in U.S., Eyes SEC Approval Amid Growing Competition
A new player has emerged in the competitive race to launch the first spot Solana exchange-traded fund (ETF) in the United States, as Canary Capital recently filed an application with the Securities and Exchange Commission (SEC). The firm’s filing, which follows recent applications for XRP and Litecoin ETFs, underscores a surge in demand for Solana-based ETFs. Canary Capital now joins established asset managers like VanEck and 21Shares, both of which are already awaiting SEC approval for their own Solana-focused funds.
The proposed Canary Solana ETF would offer U.S. investors a regulated way to gain exposure to Solana’s native token, SOL, without directly holding the cryptocurrency. If approved, the ETF would trade on traditional stock exchanges, opening up access to Solana’s expanding ecosystem. Known for supporting decentralized applications (dApps), decentralized finance (DeFi) platforms, and a host of digital assets, Solana has gained traction as a major Ethereum competitor, thanks to its high transaction speeds and low-cost structure. With SOL’s market cap approaching $82 billion and a remarkable 400% price gain in the past year to $175, investor interest in Solana assets has intensified significantly.
Canary Capital emphasized the robust performance of Solana, noting its resilient DeFi environment, high transaction throughput, and growing active user base. These factors, combined with affordable transaction fees, position Solana as a strong alternative to Ethereum. Canary sees potential for further growth, especially in stablecoin activity on the network, which could cement Solana’s role as a top blockchain for dApps and DeFi solutions.
Founded just last month in Nashville, Canary Capital aims to offer a range of institutional-grade crypto management and trading services. While recent SEC approvals for Bitcoin and Ethereum ETFs indicate a favorable regulatory trend, industry analysts caution that approval of Solana ETFs may face additional hurdles, particularly due to the SEC’s previous stance on SOL as an unregistered security. Political factors, including the upcoming U.S. elections and potential changes in SEC leadership, may also impact the timeline for approval.
Meanwhile, VanEck and 21Shares, who filed Solana ETF applications in June, are also vying to bring Solana’s growth potential to mainstream investors. Both firms already offer Bitcoin and Ethereum ETFs in the U.S. With the competition for Solana ETFs intensifying, asset managers are keen to be among the first to introduce Solana-based investment opportunities to the U.S. market, capitalizing on the blockchain’s rapidly expanding ecosystem and investor demand.
