The buzz in financial circles is growing louder, and it’s all about cryptocurrency funds. Canary Capital, a major player, just made a big move towards getting its Solana exchange-traded fund, or ETF, approved. This isn’t just any filing; it’s their sixth update, and that’s usually a strong hint that regulators are getting close to a decision.
This specific Solana ETF includes something called “staking.” This lets investors earn rewards by holding their crypto, a bit like earning interest in a bank account. Canary Capital is also not new to this game. They’ve put forward ETF ideas for other digital currencies like XRP, Litecoin, and HBAR. It seems like everyone is in a rush to launch these new crypto investment products.
🚀 Solana ETF support coming
Canary Capital files its sixth amendment for the Solana ETF
With a 0.50% management fee and NO cuts to staking rewards
Analysts believe in imminent SEC approval
This advance could open doors… pic.twitter.com/ZKjOwVWieR
— Diario฿itcoin (@Blaze Trends)
Even with some government shutdowns causing a bit of a wobble, Canary Capital has kept pushing. They’re aiming for a green light from the U.S. Securities and Exchange Commission, or SEC, for their Solana-based ETF. Recent reports confirm that the firm tweaked its paperwork, adding a 0.50% management fee for these products. This puts them right in the thick of the competition for crypto ETFs.
Canary’s Sixth Update Points to Approval
The latest changes mainly focus on the Solana ETF and its staking features. Canary Capital has made it clear: they won’t take a cut from the staking rewards earned on the Solana network. However, there will be fees for the companies that handle the staking and validation. This approach stands out when compared to other firms, like Bitwise. Bitwise offers a lower base fee of 0.20%, but they keep about 6% of the staking rewards. This could add up to an extra cost of 45 to 50 “basis points,” which is just a fancy way of saying 0.45% to 0.50%.
Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, spilled the beans on X. He pointed out Canary’s sixth amendment for the Solana ETF, saying, “Canary just filed Amendment #6 (that’s how close we are) for their spot Solana ETF w/ a 0.50% expense ratio but NO CUT of the Solana staking rewards.”
Canary just filed Amendment #6 (that’s how close we are) for their spot Solana ETF w/ a 0.50% expense ratio but NO CUT of the Solana staking rewards. Bitwise is 20bp exp ratio but 6% of staking rewards (approx 45-50bps extra fee). Because of staking it’s going to make the fees… pic.twitter.com/DOtbgaHeSg
— Eric Balchunas (@EricBalchunas)
Balchunas also highlighted that comparing fees for products with staking can be tricky. He thinks it’s similar to old-school ETFs, where looking at the actual money you make after all fees is more telling than just the listed management fee.
Waiting for Spot Crypto ETFs
This progress comes at a good time for the crypto world. Paul Atkins, a known supporter of digital currencies, recently became the new head of the SEC under the Trump administration. The agency has also streamlined its rules for listing new ETFs. This means they can now process crypto ETF requests faster, potentially speeding up their launch.
However, a recent partial shutdown of the U.S. federal government caused some important deadlines for Solana and other crypto ETF reviews to pass. This created some uncertainty about how the SEC would move forward once it was fully back open. People in the industry believe the agency might approve individual crypto ETFs in batches during October and November. Their current focus is on the registration statements, which don’t have strict time limits.
Canary Capital is part of a larger trend. They’re among many companies pushing for these new funds, including ideas for Dogecoin and other digital tokens. These developments show a big shift in how regulators view digital assets. The SEC is looking for more clarity, even though there are still things to sort out, like how to keep crypto safe and the risks tied to staking networks.
The financial world is watching closely. Approving spot ETFs for XRP and Solana could really open the floodgates for big financial institutions to invest. It would be a repeat of what happened with the Bitcoin and Ethereum ETFs that got approved earlier. Balchunas and his colleague, James Seyffart, recently stated they now believe approvals for Solana, XRP, and Litecoin ETFs this year are “100% certain.” This confidence comes after the SEC changed its approval standards.