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The world of cryptocurrency investment may be on the brink of a major change as Canary Capital deepens its effort to introduce a Solana-based exchange-traded fund (ETF). This updated proposal now includes a partnership with Marinade Finance, a key player in the Solana blockchain’s staking ecosystem. The move signals a new direction for crypto ETFs, potentially making it easier for investors to earn rewards through staking within the fund itself.
What Is Happening with Canary Capital’s Solana ETF?
Canary Capital recently submitted an updated application to the U.S. Securities and Exchange Commission (SEC) for approval of its Solana ETF. The new version, renamed the Canary Marinade Solana ETF, includes a feature allowing the fund to stake Solana tokens directly through Marinade Finance. This partnership aims to generate additional income from staking rewards for ETF investors.
Staking is a process where cryptocurrency holders lock up their coins to help secure the blockchain network and earn rewards in return. While popular in proof-of-stake networks like Solana, staking has traditionally been excluded from regulated ETFs due to regulatory uncertainty.
The inclusion of staking in the ETF would offer investors a new way to benefit not only from price increases but also from ongoing staking rewards — all without the need to manage staking themselves.
Why Is This Important?
This new filing is significant for several reasons. First, it shows how fund managers are exploring more innovative ways to structure crypto ETFs, especially for altcoins like Solana. Many earlier ETF applications focused on simpler holdings without staking or other active features.
Second, this updated proposal hints at growing regulatory acceptance. The SEC has been cautious about crypto ETFs, often delaying decisions or denying applications over concerns about investor protections and market risks. However, recent changes in leadership and policy have opened the door to more advanced products, especially those offering exposure to major cryptocurrencies and their underlying technologies.
Bloomberg analyst James Seyffart highlighted that Marinade Finance’s role in enabling native staking within the ETF structure represents a major shift in how these funds can operate.
What’s the Regulatory Outlook?
Despite the promising updates, the path to approval is not yet clear. The SEC has postponed decisions on many crypto ETF proposals, including those from Canary Capital and other firms like 21Shares and Bitwise.
Currently, the SEC’s review schedule lists August 17 as the next deadline for a decision on Canary’s Solana ETF. The final verdict for this and other Solana ETFs is expected by October 10, 2025.
This timeline closely mirrors the SEC’s previous approach to Bitcoin and Ethereum ETFs, which involved long review periods followed by gradual approval.
While some industry insiders hoped for faster approvals, most expect decisions to arrive in the last quarter of 2025.
Market Sentiment on Solana ETFs
Despite regulatory delays, market sentiment remains optimistic. Prediction markets like Polymarket estimate an 82% chance that a Solana ETF will receive approval by the end of 2025. However, the likelihood of a green light before July remains relatively low at 18%.
Bloomberg analysts have expressed even stronger confidence, putting the chance of approval at 90% within the year. This is based on the SEC’s shifting stance, which increasingly views Solana as a commodity, and the presence of regulated Solana futures contracts on the Chicago Mercantile Exchange (CME).
These developments suggest that regulators may be more comfortable with products linked to Solana than in the past.
What Could This Mean for Investors?
If the Canary Marinade Solana ETF receives approval, it would be one of the first investment products to offer direct staking rewards within a regulated framework. This would open the door for retail and institutional investors to benefit from Solana’s proof-of-stake system without having to stake tokens themselves or manage wallets.
Such an ETF could attract significant interest by combining price exposure with an income stream from staking rewards. It would also set a precedent for future crypto ETFs to include more complex blockchain features.
The new partnership between Canary Capital and Marinade Finance reflects a growing trend of blending traditional investment vehicles with decentralized finance (DeFi) innovations.
