3iQ has filed for approval for a Solana ETF Could it be coming soon
Great news for crypto investors! The ETF market is abuzz with excitement as 3iQ, a digital asset manager, has filed a preliminary prospectus for the first Solana (SOL) exchange-traded product (ETP) in North America. This ETP, called The Solana Fund (QSOL), is set to be listed on the Toronto Stock Exchange (TSE) in Canada, pending regulatory approvals.
If approved, QSOL will provide investors with exposure to SOL’s daily price movements and the potential staking yields, estimated to be between 6-8%. To ensure the security of the fund, Coinbase Custody and Tetra Trust will act as custodians, with Coinbase offering institutional staking infrastructure.
3iQ has a successful track record in the crypto ETF market, already offering the Bitcoin ETF (BTCQ) and Ether Staking ETF (ETHQ) on the TSE. These funds currently manage around $233 million and $38.7 million in net assets, respectively. Additionally, 3iQ provides The Bitcoin Fund (QBTC) and The Ether Fund (QETH), solidifying its position in the crypto ETF market.
Canada has been at the forefront of crypto ETF approvals, having approved the world’s first spot Bitcoin ETFs in February 2021, followed by spot Ether ETFs two months later. This regulatory progress has given Canada a head start in the ETF space compared to the United States, which has only recently introduced futures ETFs for Bitcoin and Ethereum.
While Solana ETPs worth over $1 billion already exist globally, including the 21Shares Solana Staking ETP and ETC Group’s Physical Solana product in Europe, no U.S. firms have announced plans for a spot Solana ETF. However, there is hope for a Solana ETF in the U.S., as prominent figures like ARK Invest CEO Cathie Wood and Ripple CEO Brad Garlinghouse have expressed optimism about its potential.
Despite the growing interest in crypto ETFs, a U.S. Solana ETF may not materialize in the near future due to the absence of a futures market for Solana, according to Rob Marrocco of Cboe. Nonetheless, 3iQ’s filing for a Solana ETP on the Toronto Stock Exchange marks a significant step towards expanding cryptocurrency investment products in North America.
If approved, QSOL will provide investors with direct exposure to Solana’s price movements and staking opportunities. This development reflects the increasing interest and innovation in the crypto ETF space. Currently, Solana (SOL) is trading at $134.07, experiencing a marginal 0.08% decline in the last 24 hours.
Exciting times lie ahead for crypto enthusiasts as the potential of QSOL opens up new investment opportunities.