In a significant move for Solana-based financial products, Canary Capital has amended its S-1 filing with the U.S. Securities and Exchange Commission (SEC), signaling a new phase for its proposed Solana exchange-traded fund (ETF). The update, dated May 21, 2025, introduces a rebranding and a key technical enhancement that could shape the future of crypto ETFs in the U.S. market.
ETF Renamed as “Canary Marinade Solana ETF”
The ETF, originally submitted to the SEC in March 2025 as the “Canary Solana Trust,” has been renamed the Canary Marinade Solana ETF. The change reflects a newly formed partnership with Marinade Finance, a prominent Solana protocol known for decentralised liquid staking. This collaboration is more than branding—it represents a technical and strategic alignment that introduces staking income into the ETF structure.
The inclusion of Marinade in the fund’s official name underscores its central role in managing and optimising SOL assets within the ETF. Marinade’s liquid staking capabilities allow users to stake SOL tokens while still maintaining access to liquidity through mSOL, a tokenised representation of staked SOL. This mechanism is now integrated into the ETF’s management strategy.
SOL Staking to Generate Yield for Investors
With the integration of SOL staking, the ETF will not only passively track the price of Solana but also generate yield from staking rewards. According to the amended S-1 filing, the income earned through Marinade’s liquid staking system could be utilised in two ways: either reinvested to purchase additional SOL tokens or distributed back to shareholders as part of the fund’s profit-sharing policy.
This marks a progressive shift in ETF structuring, where passive crypto tracking funds are evolving into yield-generating instruments. The fund aims to closely mirror both Solana’s market performance and the economic benefits of participating in its staking ecosystem.
SEC Approval Remains the Final Hurdle
The inclusion of staking in the ETF’s structure still hinges on regulatory approval. While the filing is a proactive step, precedent from past SEC decisions could influence its fate. Notably, Ethereum ETF proposals from issuers like Bitwise are also awaiting decisions on whether staking can be included within fund structures.
The final outcome may depend on how the SEC, under the leadership of pro-crypto commissioner Paul Atkins, chooses to handle staking in ETFs. If the SEC follows the cautious path it took ahead of Ethereum ETF approvals in July 2024, it may ask Canary Capital to remove the staking feature before granting approval.
Nevertheless, the inclusion of a staking mechanism in the filing—regardless of its approval status—reflects a broader industry push to blend yield generation with asset tracking, particularly in high-throughput ecosystems like Solana.
Broader Implications for Crypto ETFs
This development sets a new precedent in the evolving landscape of crypto ETFs. While most ETFs have so far focused on Bitcoin or Ethereum, often in spot or futures format, the Canary Marinade Solana ETF positions itself as a next-generation product—bridging price tracking and decentralised finance (DeFi) rewards.
If approved, this could encourage further ETF innovation around other staking-enabled chains like Polkadot, Avalanche, or Cosmos. Moreover, the growing focus on staking rewards in traditional investment vehicles highlights how DeFi mechanisms are being integrated into mainstream finance.
Canary Capital’s updated ETF proposal represents a bold stride in crypto-finance integration. By rebranding to reflect its partnership with Marinade Finance and incorporating SOL staking into its investment structure, the fund positions itself as a pioneer in staking-enabled ETFs. Now, all eyes are on the SEC to determine whether the industry is ready for this next step in crypto asset management.
