On Wednesday, May 21, Canary Capital amended its S-1 filing for a Solana exchange-traded fund. The ETF is now known as the “Canary Marinade Solana ETF.” During the initial filing in October 2024, it was named “Canary Solana Trust.”
Canary Capital Updates S-1 Filing for Solana ETF
The updated document includes details on a new partnership with Marinade Finance, a protocol focused on decentralized staking. As a result of the partnership, the fund can include SOL staking as part of its ETF system. Thanks to this partnership, SOL assets will earn income using Marinade’s liquid staking process.
One objective of this integration is to track Solana price movements and the rewards available from staking. As explained in the filing, staking will play a major role in managing the ETF and profits may either be used to buy more assets or given back to shareholders, in line with the fund’s guidelines.
Moreover, Ethereum ETF issuers like Bitwise are seeking the SEC to allow the staking option. If the decision is finalized on these filings, the Solana staking clause could also be approved by the SEC under pro-crypto Paul Atkins’ leadership. Nonetheless, if the agency mimics its move ahead of the Ether ETF approval in July 2024, the staking clause might have to be removed.
This update comes as regulators are paying closer attention to crypto-based ETFs. Official proceedings to look into pending Solana ETF proposals were announced by the U.S. Securities and Exchange Commission on May 19. The SOL ETF filings in consideration were submitted by 21Shares, Bitwise, VanEck and Canary Capital.
With these proceedings, SEC opened a public comment phase wherein anyone can share their opinions on the proposed changes. However, according to the agency, these initiatives do not confirm any decision on approval or denial yet.
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