Canadian Investment Firm, 3iQ, Seeks to Launch First-Ever North American Solana ETP

In a move that could broaden investor access to Solana (SOL), leading Canadian investment management firm 3iQ, on Thursday, filed a prospectus with the Ontario Securities Commission (OSC) to launch a new exchange-traded product (ETP) on the Toronto Stock Exchange (TSX), solely focused on the cryptocurrency. 

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 ETP, dubbed the “Solana Fund,” will trade under the ticker QSOL if approved by the OSC and would be the first of its kind in North America, allowing investors to gain exposure to SOL’s price movements without the need to directly purchase and hold the underlying asset or navigate the complexities of blockchain technology.

Streamlined Solana Exposure for Traditional Investors

Exchange-traded products are structured investment vehicles that track the underlying price of an asset, similar to stocks or ETFs that track traditional assets like gold or oil. In the case of 3iQ’s Solana ETP, the fund would hold SOL tokens, and the value of the ETP would fluctuate based on the price of SOL.

For investors interested in gaining exposure to SOL but unfamiliar or uncomfortable with cryptocurrency wallets and exchanges, a Solana ETP offers a more familiar and potentially more accessible investment avenue, an opportunity, in fact, to diversify their crypto portfolios. According to recent market data, institutional interest in crypto assets is at an all-time high, with SOL often being highlighted as a top pick due to its technological advancements and strong developer community.

Potential Benefits of a Solana ETP

The launch of a Solana ETP, with SOL’s Proof of History (PoH) consensus mechanism, in Canada could usher in several potential benefits for investors and the broader cryptocurrency ecosystem:

1. Increased Investor Adoption: By providing a regulated and transparent investment vehicle, a Solana ETP could attract new investors to the cryptocurrency space, potentially accelerating Solana’s mainstream adoption.

2. Enhanced Liquidity: The introduction of an ETP could improve Solana’s liquidity, making it easier for investors to buy and sell the cryptocurrency. This increased liquidity could benefit both institutional and retail investors.

3. Simplified Investment Process: For investors who are new to the cryptocurrency space or hesitant about dealing directly with cryptocurrency exchanges, a Solana ETP offers a familiar and potentially more streamlined investment process.

Regulatory Approval Key for Launch

While the potential benefits of a Solana ETP are significant, the product’s launch hinges on securing approval from the OSC. The regulatory landscape surrounding cryptocurrency in Canada is still evolving, and the OSC’s decision will likely set a precedent for future cryptocurrency ETP listings.

3iQ has a history of launching innovative cryptocurrency products in Canada, having already secured approval for a Bitcoin ETF in 2020. The firm’s experience in navigating the regulatory landscape could prove beneficial in expediting the approval process for the SOL ETP. As such, while the application represents a significant step forward, the launch of the ETP is not yet a done deal.

Potential Impact on Solana’s Price

The news of 3iQ’s application to launch a Solana ETP has already generated positive sentiment within the cryptocurrency community. If approved, the ETP could provide a significant boost to Solana’s adoption and potentially drive its price upwards.

However, it’s important to remember that the cryptocurrency market remains volatile, and SOL’s price is subject to a wide range of factors beyond the launch of an ETP.

At press time, Solana (SOL), which ranks #5 among cryptocurrencies by market capitalization—according to Coinmarketcap data—is trading at a live price of shy $132 today, down by almost 4% since yesterday, with a significant 24-hour trading volume of approximately $2.46 billion, and a current market cap which stands impressively at $62.75 billion.