Canary Capital filed an amendment to its Solana ETF documents, which will include passive income from SOL staking. The Canary Solana ETF will be renamed to reflect the changes.
Canary Capital filed an amendment to its Solana ETF forms to include SOL staking. The fund has been renamed from Canary Solana ETF to Canary Marinade Solana ETF. The change arrives a week after Canary Capital filed for a first-of-its-kind SUI ETF.
Instead of a standard spot ETF, the new fund will include SOL staking within the Marinade ecosystem. The change arrived during the review and discussion period for the fund.
The Canary application is one of the major upcoming Solana ETF, looking to launch with a simple spot product. A US-based Solana ETF by some of the bigger financial companies is expected by the end of the year. Canary is the first to tap staking for passive income.
Canary Capital picked Marinade Finance as a partner
Marinade Finance, one of the liquid staking protocols on Solana, did not explicitly state the partnership but recently hinted at an upcoming announcement.
Tomorrow! https://t.co/RY77wZnd1H
— Marinade 🛡️ (@MarinadeFinance) May 21, 2025
Marinade Finance carries over $1.81B in value locked, rising recently with the recovery of SOL. The protocol has issued over 4.12M MSOL, which is used within Solana DeFi and DEX activity. MSOL trades at a high premium of $212, while SOL on the open market sank to $163.
Solana carries over $9.4B in liquid staking, with Marinade Finance in the top 5 of protocols. Liquid staking remains unregulated, and protocols meet different demands for liquid staking tokens. Staking SOL with the Marinade platform would both give depositors passive income and access to MSOL for additional activities on Raydium and other DEX.
The new asset will open additional investigations to vet the reliability of Marinade. However, the launch of a Solana ETF with staking moves beyond mere exposure to the spot price and gives more credence to the entire Solana decentralized ecosystem.
Canary Capital warned against slashing risk
Liquid staking is used as a way to secure protocols by pledging valuable SOL tokens. Any flaws in consensus can lead to slashing or losing the staked SOL. Currently, Solana does not implement slashing in its liquid staking, but Canary Capital has warned about potential changes to the protocol.
The fund’s Custodian will remain in control of the private keys associated with Solana liquid staking. The SOL will be exposed to some risk due to its delegation to various SOL validators.
The fund has chosen the more rewarding liquid staking, though Solana also offers simple passive staking with a smaller yearly reward. Marinade Finance will provide liquid staking services for at least two years after the launch of the ETF. Marinade Finance will also provide the protocol for Canary Capital to connect to Solana validators and stake the deposited SOL tokens.
After the initial period of two years, Canary Capital has shown intention to stake with other providers.
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