Canary Capital Adds Marinade SOL Staking to Updated Solana ETF Filing

The updated filing introduces a partnership with Marinade Finance, enabling the fund to incorporate SOL staking into its structure.

Canary Capital has submitted an amended S-1 registration statement to the U.S. Securities and Exchange Commission (SEC) for its proposed spot Solana (SOL) exchange-traded fund (ETF). The updated filing now includes a partnership with Marinade Finance to integrate SOL staking into the fund’s structure.

The ETF, now named the “Canary Marinade Solana ETF,” will seek to invest in SOL and may engage in staking activities through Marinade’s liquid staking protocol. Staking rewards may be reinvested or distributed to shareholders, depending on the fund’s guidelines.

This development follows similar initiatives by other asset managers to include staking features in their crypto-based ETFs currently pending approval from the SEC.

Earlier this year, several asset managers, including 21Shares, Bitwise, VanEck, and Fidelity, filed for spot Solana ETFs. However, the SEC has postponed decisions on these proposals.

The Commission is examining multiple legal and policy issues related to these applications, focusing on concerns about market manipulation and investor protection.

As part of this process, the SEC has initiated formal proceedings and opened a public comment period to gather further input on the proposed rule changes.

The pending proposals also include a spot Bitcoin ETF from ARK Invest and Cathedra Collective, and an Ethereum ETF from Invesco.

The SEC’s decision to defer rolling out new products has surprised some market participants, especially given the anticipation for Solana ETFs.

The close attention to these applications signals the complexities involved in expanding the ETF market to include cryptocurrencies, considering the regulatory landscape and evolving market dynamics.