First Solana ETP in North America

First Solana ETP in North America


By Jakub Lazurek

21 Jun 2024 (21 days ago)

3 min read


3iQ Digital Asset Management is set to launch North America's first Solana ETP, QSOL, on the Toronto Stock Exchange, offering innovative crypto investment options.

3iQ Digital Asset Management announced the filing of a preliminary prospectus for The Solana Fund (QSOL) with Canadian securities authorities, excluding Quebec. If approved, QSOL will be the first Solana (SOL) exchange-traded product (ETP) in North America, trading on the Toronto Stock Exchange (TSX) under the ticker “QSOL.”

This move marks a significant milestone for 3iQ, known for launching the first publicly traded Bitcoin and Ether funds in Canada. QSOL aims to give investors exposure to SOL's price movements in US dollars and offers a chance for long-term capital growth. The fund will also use staking yields from the Solana network, expected to be between 6-8%.

Greg Benhaim, 3iQ's Executive Vice President, stressed the company's commitment to innovation and regulatory compliance. “3iQ seeks to set a global standard of excellence,” he said. 3iQ has teamed up with Canaccord Genuity as the agent for the offering, while Tetra Trust and Coinbase Custody Trust Company, LLC will act as custodians. Coinbase Custody's institutional staking infrastructure will support SOL staking. This fund aims to offer a regulated investment vehicle for both individual and institutional investors.

Though this is a first for North America, Solana ETPs are already popular globally. For example, the 21Shares Solana Staking ETP and ETC Group Physical Solana product in Europe hold over $1 billion in assets. Approval of QSOL could lead to more Solana-based investment products in North America. Bloomberg ETF analyst James Seyffart highlighted Canada's progressive stance on cryptocurrency ETFs, noting it had spot Bitcoin and Ethereum ETFs before the US.

However, Seyffart pointed out that QSOL is a Closed-End Fund rather than an ETF, similar to Grayscale trust products but with mechanisms to manage price volatility. He noted, “There is also no guarantee that this will launch. It’s just been filed.”

Founded in 2012, 3iQ is a leader in digital asset management. The company offers various investment products, including The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH). Their flagship products, the Bitcoin ETF (BTCQ) and the Ether Staking ETF (ETHQ), demonstrate their dedication to providing innovative and regulated digital asset solutions.

3iQ's announcement highlights its commitment to pioneering digital asset investment solutions. If approved, QSOL would significantly influence the North American investment landscape by offering a new way to invest in Solana. The company’s partnerships and focus on regulatory compliance are key to this endeavor.

In summary, 3iQ's filing for the first Solana ETP in North America is a crucial step in digital asset investments. QSOL aims to provide benefits through exposure to Solana and staking yields. If approved, it will enhance 3iQ’s product portfolio and set a new standard for digital asset investment products in North America.

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