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The market is buzzing with news of ETF one of the hot topics for all crypto fans globally. After months of speculation, Solana ETF work is going on. Digital asset manager 3iQ has filed for a Solana (SOL) exchange-traded product (ETP) listing on Canada’s Toronto Stock Exchange (TSE), marking a potential first for North America. This ETP seeks to offer exposure to SOL’s daily price movements and staking yields.
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.
— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024
This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU
Here’s what it means! Read on!
Solana ETF On the Way?
On June 20, 3iQ announced the submission of a preliminary prospectus for The Solana Fund (QSOL) to regulatory authorities across Canadian provinces and territories, excluding Quebec. QSOL would be the first Solana ETP listed in North America if approved.
Regarding staking, QSOL aims to expose investors to SOL’s price and potential staking yields, estimated between 6-8%. Meanwhile, Coinbase Custody and Tetra Trust will serve as custodians, with Coinbase Custody providing institutional staking infrastructure.
3iQ already lists the Bitcoin ETF (BTCQ) and Ether Staking ETF (ETHQ) on the TSE, managing approximately $233 million and $38.7 million in net assets, respectively. The firm also offers The Bitcoin Fund (QBTC) and The Ether Fund (QETH).
Historical Context
Being a pro-crypto country, Canadian regulators approved the world’s first spot Bitcoin ETFs in February 2021, followed by spot Ether ETFs two months later. Bloomberg ETF analyst James Seyffart highlighted that Canada had spot Bitcoin and Ethereum ETFs before the U.S. introduced futures ETFs for these assets.
Having said that, if you look at global data over $1 billion worth of Solana ETPs already exist, including the 21Shares Solana Staking ETP, ETC Group’s Physical Solana product in Europe. Despite interest, no U.S. firms have announced plans for a spot Solana ETF.
Why It’s Important and What Experts Think
The move by 3iQ Corp to file for a Solana ETP on the Toronto Stock Exchange reflects the growing interest in cryptocurrency ETFs. ARK Invest CEO Cathie Wood has shown optimism about a Solana ETF in the U.S. following Ethereum ETF approvals, and Ripple CEO Brad Garlinghouse also anticipates ETFs for cryptocurrencies like Solana. However, Rob Marrocco of Cboe remains skeptical about the near-term feasibility of such ETFs due to the lack of a futures market for Solana.
Conclusion
3iQ’s filing for a Solana ETP on the Toronto Stock Exchange signifies a major step towards expanding cryptocurrency investment products in North America. If approved, this product will provide investors with direct exposure to Solana’s price movements and staking opportunities, reflecting the growing interest and innovation in the crypto ETF space.
At the time of writing, Solana (SOL) is trading at $134.07, down marginally by 0.08% in the last 24 hours.