Solana ETF on the Horizon? Canada’s 3iQ Seeks SOL ETP Listing on the Toronto Stock Exchange

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Crypto enthusiasts are excited as a recent development suggests the long-awaited Solana ETF news might be closer than ever. On June 20, digital asset manager 3iQ filed for a Solana exchange-traded product (ETP) listing on Canada’s topmost stock exchange, the TSE. 

The Solana Fund, with the ticker QSOL, aims to track Solana’s daily price movements and even offer staking yields for investors. 3iQ says QSOL would be the first Solana ETP in North America if approved. 

Importantly, this development could bring more eyes to the SOL ecosystem and even the crypto market.

3iQ Plans to Launch North America’s First Solana ETP on the Toronto Stock Exchange

On June 20, 2024, 3iQ announced through the X platform that it had submitted a prospectus to the Ontario Securities Commission (OSC). The firm aims to launch North America’s first Solana exchange-traded product (ETP) on the Toronto Stock Exchange (TSX) under the ticker QSOL. This new ETP will offer investors exposure to the price movements of SOL.

However, the benefits go beyond just tracking SOL’s price movements. Per the X post, QSOL will include exposure to staking yield generated by the Solana network. This dual benefit aims to attract both price-focused and yield-focused investors.

In a press release, Greg Benhaim, Head of Trading and Executive Vice President of Product at 3iQ expressed pride in their collaboration with the OSC. 

He highlighted 3iQ’s goal to “enhance Canada’s digital asset investment landscape.” Benhaim emphasized their commitment to setting a global standard of excellence.

“As pioneers in digital asset investment management, we look forward to continuing our mission to deliver regulated investment vehicles — embodying the highest standards and working with best-in-class partners — for individual and institutional investors to efficiently access the crypto asset class,” Benhaim said.

Furthermore, a Strategic Advisor to 3iQ, Christopher Matta, shared insights about the Solana ETP’s features. He said the Solana Fund would include staking, similar to their Ether ETP, allowing investors to earn rewards from Solana.

He added that 3iQ can pass these rewards directly to the investors by enabling staking, making the fund more appealing.

Bloomberg ETF Analyst React

Reacting to the latest development, Bloomberg ETF analyst James Seyffart highlighted that Canada had listed spot Bitcoin and Ethereum ETFs before the US.

In February 2021, Canadian regulators approved the launch of the world’s first ETF for Bitcoin. Two months later, the regulators approved ETFs for Ethereum, which allowed Canadian investors to gain managed exposure to Bitcoin and Ethereum.

Therefore, Canadian investors had earlier access to investment opportunities in cryptocurrencies than their United States counterparts.

Regarding Solana ETPs, Seyffart noted that there are over $1 billion worth of global products. These include offerings like the ETC Group Physical Solana product and the 21Shares SOL Staking ETP in Europe.

Therefore, launching another ETP doesn’t mean a SOL ETF is imminent. Moreover, Seyffart says there’s no guarantee 3iQ’s Solana ETP will launch, terming it “just filed.”

Nonetheless, 3iQ’s SOL ETP filing marks a milestone in the crypto investment landscape. If approved, it will provide investors with unique opportunities and reinforce 3iQ’s leadership in Canada’s digital asset management landscape.