- 1 Canadian digital asset management firm 3iQ filed for the first Solana ETP in North America.
- 2 If approved, the product will be listed on Canada’s Toronto Stock Exchange (TSX).
- 3 3iQ committed that the launch of Solana ETP would offer easy exposure to Solana.
On June 21, 3iQ Digital Asset Management announced its move to deliver North America’s first Solana Exchange-Traded Product (ETP). The objective is to offer exposure to Solana (SOL) and staking yield generated by the network.
What to Expect from the Solana Exchange-Traded Product
3iQ, one of the world’s leading digital asset investment fund managers is all set to offer Solana ETP in North America. The firm filed a preliminary prospectus with the securities regulatory authorities to list the Class A units of the Fund on TSX under the ticker “QSOL”.
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.
— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024
This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU
If the proposal gets a positive response, QSOL become the first SOL ETP in North America. It would offer investors exposure to SOL and staking yields which is estimated over 6.8%. This would also open doors for crypto enthusiasts to access long-term capital appreciation.
Canaccord Genuity is the agent for the offering whereas Tetra Trust and Coinbase Custody Trust Company serve as custodians. One of the interesting facts about the SOL ETP was that Canadian investors can gain SOL exposure without requiring hot wallets or blockchain technology.
There are changes that 3iQ will get approval on ETP as Canada previously approved spot Bitcoin and Ethereum ETFs and Solana ETPs exceeded 1 Billion. Moreover, this also put the spot light on the spot Solana ETF.
On May 22, Brian Kelly, CNBC Fast Money Trader forecasted that SOL ETF could get approval once the spot Ethereum ETF is approved. James Seyffart, Bloomberg ETF analyst, on the other hand, believes that SOL ETF would record more demand when approved.
Solana Price Performance
3iQ’s announcement haven’t made waves on the SOL price chart; the decline since the last one month continues to date. At press time, SOL was trading at $132.16, after a decline of 3.74% intraday with a market cap of $61,115,044,568, with $61,115,044,568 in 24-hour volume.
In the last month, SOL dropped from $173.67 on May 23 to $132.31 at press time, showcasing a fall of 27.57%. Moreover, the blockchain has $4.03 Billion in Total Value Locked (TVL), according to DefiLlama.
TVL of SOL also declined from $4.931 Billion on May 22 to $4.185 Billion on June 20 which represents the declined interest of individuals in the respective blockchain.
Canada’s Position in Crypto Industry
Approval of Spot Bitcoin and Ethereum ETF and exceeding $1 Billion in Solana ETP enhanced Canada’s position in the crypto market.
According to Statista, the Canadian cryptocurrency market generated revenue of $0.7 Billion in 2022 and approximately $1.4 Billion in 2023.
Canada Crypto Revenue I Source: Statista
Furthermore, the market is projected to hit $1.7 Billion in 2024 and over $2.4 Billion by the end of 2028 which represents enhanced involvement of Canada in the Crypto field. The approval of Solana ETP and Spot Solana ETF thus enhances Canada’s positioning in the crypto space.
Disclaimer
The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.
