OSC annual report shows ETFs, crypto funds reshaping fund industry

The division noted the launch of several previously unavailable products during the year. In April 2025, Canadian regulators issued receipts for the first AAA-rated collateralized loan obligation ETFs, after determining the underlying assets were not "illiquid" under fund rules. The report also detailed the arrival of Solana and XRP exchange-traded funds offering direct spot exposure, both of which began trading on the Toronto Stock Exchange within weeks of futures contracts launching in the United States, as well as Canada's first triple-leveraged index ETFs, which began trading in May 2025.

On the policy side, the division said it completed amendments modernizing continuous disclosure requirements, including a new conflict-of-interest reporting form for related-party transactions, alongside a second phase of rules governing crypto asset funds and updates to the principal distributor model used to distribute mutual funds. Ongoing initiatives include proposed amendments on liquidity-risk/391885">liquidity risk management, for which a 120-day comment period closed on March 27, 2026, and continued work on enhanced exchange-traded fund regulation, which produced a joint staff notice with the Canadian Investment Regulatory Organization on July 29, 2026 addressing industry practices around foreign-listed ETFs.