TL;DR
- Solana ETP by 3iQ: Toronto-based crypto fund 3iQ is launching an exchange-traded product (ETP) for Solana (SOL). The ETP, named QSOL, aims to provide exposure to SOL and track its daily price movements against USD.
- Why Solana?: Solana stands out due to its impressive transaction speeds, scalability, and robust decentralized finance (DeFi) environment. It’s often considered the next Ethereum, with a proof-of-stake consensus mechanism.
- Historic First: If regulators approve, QSOL will become the world’s first exchange-traded product linked to Solana. It will offer investors exposure to SOL and allow participation in staking yield through Coinbase Custody.
Toronto-based crypto fund 3iQ has set its sights on Solana (SOL) as the next potential addition to the growing list of ETPs. The company recently filed a preliminary prospectus for the Solana ETP, dubbed QSOL, with the Toronto Stock Exchange.
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
The Solana ETP aims to provide exposure to the altcoin and track the daily price movements of SOL/USD. Investors can expect both long-term capital appreciation and network-generated staking yield, according to 3iQ’s press release.
The move comes after 3iQ successfully launched publicly traded crypto funds for Bitcoin and Ethereum in Canada.
Why Solana?
Solana has caught the attention of investors and developers alike due to its impressive transaction speeds and scalability. Often considered the next in line after Ethereum, Solana boasts a robust environment for decentralized finance (DeFi) applications.
Its proof-of-stake consensus mechanism has attracted users and positioned it as the second-largest smart contract platform by trading volume and market cap.
In-Line with Standard Chartered’s Prediction
British multinational bank Standard Chartered recently predicted that Solana would soon have its own ETFs. Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered Bank, believes that crypto ETFs for Solana could receive approval by 2025. The precedent set by Ethereum ETFs has fueled speculation and optimism around Solana’s prospects.
The Solana Fund (QSOL) has taken a significant step forward by submitting its preliminary prospectus to securities regulatory authorities throughout Canada. If all goes well and the regulators give their approval, QSOL will make history as the very first exchange-traded product linked to Solana, making it accessible to investors in North America.
The fund will provide exposure to SOL, tracking the daily price movements of the U.S. dollar price of SOL. Investors can also participate in staking yield generated by the network through Coinbase Custody. SOL tokens will be held by crypto custodians Tetra Trust and Coinbase Custody.
While the timeline for the fund’s availability to investors remains uncertain, 3iQ’s move underscores the growing interest in Solana. Despite recent market fluctuations, Solana continues to be a significant player, ranking as the fifth-largest cryptocurrency by market capitalization—surpassing $60 billion at press time.
