Thursday, 3iQ Digital Asset Management announcement the filing of a preliminary prospectus for The Solana Fund (QSOL) with securities authorities across Canada, excluding Quebec. If approved, QSOL will become the first North American-listed Solana (SOL) exchange-traded product (ETP), trading on the Toronto Stock Exchange (TSX) under the symbol “QSOL”.
Submission of the first Solana ETP in North America
This potential listing marks a significant milestone for 3iQ, a global leader in digital asset investment solutions. The company has a strong history of firsts in the digital assets sector, including the launch of the first publicly traded Bitcoin and Ether funds in Canada.
QSOL aims to provide investors with exposure to the SOL digital currency, daily price movements of SOL in US dollars, and the potential for long-term capital appreciation. Additionally, the fund will leverage the Solana network’s staking returns, estimated between 6 and 8 percent.
Greg Benhaim, Executive Vice President of Product and Head of Trading at 3iQ, highlighted the company’s commitment to innovation and regulatory compliance: “3iQ seeks to set a global standard of excellence and we We are proud to work closely with the OSC to responsibly improve the digital asset investment landscape in Canada.
3iQ has partnered with Canaccord Genuity as agent for the offering, while Tetra Trust and Coinbase Custody Trust Company, LLC will serve as custodians. The fund will also use Coinbase Custody’s institutional staking infrastructure, which is crucial to supporting SOL staking.
The launch of QSOL is expected to provide a regulated investment vehicle, embodying the highest standards, for individual and institutional investors. This development aligns with 3iQ’s mission to provide accessible investment options in crypto assets.
Although this is a first in North America, Solana ETPs have already made their mark globally. Products such as the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe represent over $1 billion in assets. The approval and subsequent success of QSOL could pave the way for other Solana-based investment products in North America.
James Seyffart, Bloomberg ETF analyst, note the importance of Canada’s progressive stance on cryptocurrency ETFs: “Canada had Bitcoin and Ethereum spot ETFs even before the US got futures ETFs for either the other active.
However, Seyffart also pointed out that is not an exchange-traded fund (ETF), declaring: “I was wrong. This is a closed fund. So it would be more like one of the Trusted Grayscale Products. Except that Canada’s closed-end funds have mechanisms to prevent discounts or premiums from becoming too extreme. 3iQ did this with a Bitcoin fund in 2019 before launching ETFs. There’s also no guarantee this thing will launch. It has just been filed.
Founded in 2012, 3iQ has established itself as a pioneering force in digital asset management. The company offers a range of investment products, including The Bitcoin Fund (TSX:QBTC) and The Ether Fund (TSX:QETH), with substantial net assets. The Bitcoin ETF (BTCQ) and Ether Staking ETF (ETHQ) are among its flagship products, reflecting the company’s commitment to providing innovative and regulated digital asset solutions.
At press time, SOL was trading at $132.
Featured image created with DALL·E, chart from TradingView.com
