On Thursday, 3iQ Digital Asset Management Announce File a preliminary prospectus for the Solana Fund (QSOL) with securities regulatory authorities throughout Canada, excluding Quebec. If approved, QSOL will become Solana's first exchange-traded product (ETP) (SOL) listed in North America, trading on the Toronto Stock Exchange (TSX) under the symbol “QSOL.”
The first Solana ETP was introduced in North America
This highly anticipated listing represents an important milestone for 3iQ, a global leader in digital asset investment solutions. The company has a strong history of firsts in the digital asset sector, including the launch of Canada's first publicly traded Bitcoin and Ether funds.
QSOL aims to provide investors with exposure to the SOL cryptocurrency, daily price movements of SOL in USD, and the opportunity for long-term capital appreciation. In addition, the fund will benefit from Solana Network's hedging returns, which are estimated at between 6-8%.
Greg Benheim, Executive Vice President of Product and Head of Trading at 3iQ, emphasized the company's commitment to innovation and regulatory compliance: “3iQ seeks to set a global standard of excellence and we are proud to work closely with the OSC to advance a responsible 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 act as trustees. The fund will also use Coinbase Custody's institutional staking infrastructure, which is critical to supporting SOL.
The launch of QSOL is expected to provide a regulated investment vehicle, embodying the highest standards, for both individual and institutional investors. This development is in line with 3iQ's mission to offer accessible crypto asset investment options.
While this is a first for North America, Solana's publicly traded products have already made their mark globally. Products such as the 21Shares Solana Scking ETP and the ETC Group Physical Solana product in Europe represent more than $1 billion in assets. QSOL's approval and subsequent success could pave the way for more Solana-based investment products in North America.
James Seyphart, Bloomberg ETF Analyst, male The importance of Canada's progressive stance on cryptocurrency ETFs: “Canada had Bitcoin ETFs and Ethereum ETFs before the US had futures ETFs for either asset.”
However, Seyphart also emphasized that this is not an exchange-traded fund (ETF), saying: “I was wrong. This is a closed-end fund. So it would be more similar to one of the grayscale trust products. With the exception of closed-end funds in Canada, they have mechanisms to prevent… Discounts or premiums from getting too extreme. 3iQ did this with a Bitcoin fund in 2019 before launching the ETFs, and there's also no guarantee this thing will launch it's just been introduced.”
Founded in 2012, 3iQ has established itself as a leading force in digital asset management. The company offers a range of investment products, including a Bitcoin Fund (TSX: QBTC) and an Ether Fund (TSX: QETH), with significant net assets. Bitcoin ETF (BTCQ) and Ether Scking ETF (ETHQ) are among its flagship products, reflecting the company's dedication 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