First Solana ETP in North America On The Horizon: Particulars

On Thursday, 3iQ Digital Asset Administration announced the submitting of a preliminary prospectus for The Solana Fund (QSOL) with securities regulatory authorities throughout Canada, excluding Quebec. If accepted, QSOL will change into the primary Solana (SOL) exchange-traded product (ETP) listed in North America, buying and selling on the Toronto Inventory Alternate (TSX) underneath the ticker “QSOL”.

First Solana ETP In North America Submitted

This potential itemizing marks a big milestone for 3iQ, a worldwide chief in digital asset funding options. The agency has a strong historical past of firsts within the digital asset sector, together with launching the primary publicly traded Bitcoin and Ether funds in Canada.

QSOL goals to supply traders publicity to the digital forex SOL, the every day value actions of SOL in US {dollars}, and the chance for long-term capital appreciation. Moreover, the fund will leverage staking yields from the Solana community, estimated to vary between 6-8%.

Greg Benhaim, Government Vice President of Product and Head of Buying and selling at 3iQ, emphasised the corporate’s dedication to innovation and regulatory compliance: “3iQ seeks to set a worldwide customary of excellence and we’re proud to work carefully with the OSC to responsibly improve the digital asset funding panorama in Canada.”

3iQ has partnered with Canaccord Genuity because the agent for the providing, whereas Tetra Belief and Coinbase Custody Belief Firm, LLC will function custodians. The fund may also make the most of Coinbase Custody’s institutional staking infrastructure, which is essential for supporting SOL staking.

The launch of QSOL is anticipated to offer a regulated funding car, embodying the best requirements, for each particular person and institutional traders. This improvement aligns with 3iQ’s mission to ship accessible crypto asset funding choices.

Whereas this can be a first for North America, Solana ETPs have already made their mark globally. Merchandise just like the 21Shares Solana Staking ETP and the ETC Group Bodily Solana product in Europe signify over $1 billion in belongings. The approval and subsequent success of QSOL may pave the way in which for additional Solana-based funding merchandise in North America.

James Seyffart, Bloomberg ETF analyst, noted the importance of Canada’s progressive stance on cryptocurrency ETFs: “Canada had spot Bitcoin and spot Ethereum ETFs earlier than the US even acquired futures ETFs for both asset.”

Nonetheless, Seyffart additionally emphasised that this isn’t an Exchange Traded Fund (ETF), stating, “I used to be improper. It is a Closed Finish Fund. So it could be extra just like one of many Grayscale trust products. Besides Canada’s closed finish funds have mechanisms to stop the reductions or premiums from getting too excessive. 3iQ did this with a Bitcoin fund in 2019 earlier than launching ETFs There may be additionally no assure that this factor will launch. It’s simply been filed.”

Based in 2012, 3iQ has established itself as a pioneering power in digital asset administration. The corporate provides a variety of funding merchandise, together with The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH), with substantial web belongings. The Bitcoin ETF (BTCQ) and the Ether Staking ETF (ETHQ) are amongst its flagship merchandise, reflecting the agency’s dedication to offering revolutionary and controlled digital asset options.

At press time, SOL traded at $132.

Featured picture created with DALL·E, chart from TradingView.com