Highlights:
- Canadian investment firm 3iQ has filed to launch the first Solana exchange-traded product (ETP) in North America.
- The Solana Fund will be listed on the Toronto Stock Exchange, providing easy access to SOL without complex technical hurdles.
- Solana, 5th largest crypto, could enhance liquidity with a Canadian ETF, according to industry leaders.
Digital asset manager 3iQ has applied to launch the first Solana (SOL) exchange-traded product (ETP) in Canada. The proposed fund, called “The Solana Fund,” would allow Canadian investors to purchase Solana digital currency, SOL, without dealing with complex blockchain technology, 3iQ said Thursday in a statement. This latest development follows the company’s successful launches of Bitcoin (BTC) and Ethereum (ETH) Exchange-Traded Funds (ETFs), cementing its position at the forefront of crypto investment innovation.
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3iQ Corp. is pleased to announce that we have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering.
This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU
— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024
Toronto Stock Exchange to List Solana ETP
3iQ noted that QSOL has been filed on a preliminary prospectus with securities regulatory authorities across all Canadian provinces and territories except Quebec. If approved, the Solana Fund will become the first Solana ETP listed in North America, trading on the Toronto Stock Exchange (TSX) under the ticker “QSOL.” The availability of the QSOL to investors remains uncertain at this time.
Executive vice president of product and head of trading at 3iQ, Greg Benhaim, said:
“As pioneers in digital asset investment management, we look forward to continuing our mission to deliver regulated investment vehicles — embodying the highest standards and working with best-in-class partners — for individual and institutional investors to efficiently access the crypto asset class.”
Key Perks of 3iQ’s Solana Fund
According to the company’s blog post, Solana Fund would track SOL’s price movements and provide long-term growth opportunities. Moreover, investors in 3iQ’s Solana ETP may also earn interest from native SOL staking rewards, estimated by the firm to range between 6% and 8%.
3iQ will manage the portfolio and investment for QSOL. The company has selected Canaccord Genuity to oversee the process of offering its product to investors. Meanwhile, Tetra Trust and Coinbase Custody will serve as custodians. The fund will also leverage Coinbase Custody’s institutional staking infrastructure, essential for supporting SOL staking.
3iQ already lists the Ether Staking ETF (ETHQ) and Bitcoin ETF (BTCQ) on the TSE. According to Yahoo Finance data, BTCQ has approximately $233 million in net assets, while ETHQ has about $38.7 million. The company also offers The Ether Fund (QETH) and The Bitcoin Fund (QBTC).
Solana ETP Could Follow Ethereum’s Lead
With a market capitalization of $61 billion, Solana is the fifth-largest cryptocurrency, following Bitcoin, Ethereum, Tether, and Binance Coin. Introducing a Solana ETF in Canada could boost market liquidity and offer both institutional and retail investors a new way to invest in this asset. William Quigley, co-founder of Tether and WAX, said Solana could become the next famous cryptocurrency for ETFs following the successful introduction of BTC spot ETFs.
Solana ETPs have already gained strong global traction, managing over $1 billion in assets. Companies like 21Shares, VanEck, and WisdomTree have launched Solana funds across different markets. Bloomberg analyst James Seyffart noted Canada’s pioneering launch of spot Bitcoin and Ethereum ETFs ahead of the US, underscoring the country’s progressive stance on crypto investments.
You guys would be stunned to realize we already have over $1 Billion in Solana ETPs elsewhere in the world!! pic.twitter.com/y3zSZrHJGo
— James Seyffart (@JSeyff) June 20, 2024
Solana’s Price Continues to Decline Despite Recent Development
Despite the news, Solana’s price continues to decline. At the time of writing, SOL is trading at $131.50, down 3.87% in the last 24 hours. It has dropped 27% in the past 30 days. Crypto expert Andrew Kang, co-founder of a crypto-focused venture capital company, suggested in a recent post that ETF market shifts could slow Solana’s bullish momentum. Despite strong recent performance, Kang warns that if meme trading demand decreases, SOL’s price could drop sharply to $80.
I believe the timeline for this is delayed by 1-2 quarters. Some market views
Experts now suggesting that solicitation approval/ETFs added to wealth management platforms is slated for Q4 instead of late May as originally suggested
With a lack of acute ETF inflows, momentum… https://t.co/L7Pb9RizlL
— Andrew Kang (@Rewkang) June 19, 2024
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
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