As a researcher with a background in digital asset investment and experience following the developments in this sector, I’m excited to share my perspective on 3iQ’s recent announcement regarding The Solana Fund (QSOL). This prospective listing represents another significant milestone for 3iQ, a global leader in digital asset investment solutions.
Thursdays saw 3iQ Digital Asset Management filing a preliminary prospectus for The Solana Fund (QSOL) with Canadian securities regulators, excluding Quebec. Upon approval, QSOL will mark the first Solana (SOL) exchange-traded product (ETP) to be listed in North America, available for trading on the Toronto Stock Exchange (TSX) under the symbol “QSOL”.
First Solana ETP In North America Submitted
Reaching this upcoming listing represents a notable achievement for 3iQ, a pioneering figure in the international market for digital asset investment services. With a rich background in groundbreaking initiatives within the digital asset field, 3iQ was the first to introduce publicly traded Bitcoin and Ether funds in Canada.
As an analyst, I would explain that QSOL provides me with the chance to invest in the digital currency Solana (SOL) and track its daily price changes against the US dollar. Furthermore, this investment vehicle offers potential for long-term capital growth. An added advantage is the fund’s utilization of staking rewards from the Solana network, which are estimated to yield between 6-8%.
Greg Benhaim, the Executive Vice President of Product and Head of Trading at 3iQ, underscored their dedication to groundbreaking solutions and regulatory adherence: “3iQ aspires to establish a world-class benchmark and takes great pride in collaborating with the OSC to thoughtfully advance the digital asset investment sector in Canada.”
Three Q Capital (3iQ) has teamed up with Canaccord Genuity as the deal’s facilitator, while Tetra Trust and Coinbase Custody Trust Company, LLC will function as the safekeepers of the assets. Additionally, the fund intends to make use of Coinbase Custody’s institutional-grade staking platform, which is essential for enabling Solana (SOL) staking.
The upcoming introduction of QSOL is expected to offer a controlled investment platform, upholding top-tier standards, suitable for individual and institutional investors. This initiative aligns with 3iQ’s goal of providing simple access to cryptocurrency investment opportunities.
In North America, it’s a novelty that Solana Exchange Traded Products (ETPs) have yet to make their debut. However, they have already gained significant traction internationally. For instance, in Europe, there are over $1 billion worth of assets invested in products such as the 21Shares Solana Staking ETP and the ETC Group Physical Solana. The approval and thriving performance of QSOL could serve as a catalyst for more Solana-centric investment vehicles to emerge in North America.
James Seyffart, a cryptocurrency ETF analyst at Bloomberg, highlighted Canada’s leading role in the approval of crypto ETFs. He pointed out that “Canada approved spot Bitcoin and spot Ethereum ETFs before the US had even introduced futures-based ETFs for these assets.”
As a researcher, I’d like to clarify that Seyffart corrected his initial assumption about the nature of the investment vehicle. Contrary to my earlier belief, it’s not an Exchange Traded Fund (ETF). Instead, this is classified as a Closed End Fund. It resembles Grayscale trust products in some ways, but Canadian closed end funds incorporate mechanisms to control extreme discounts or premiums. 3iQ employed such a mechanism with their Bitcoin fund back in 2019, prior to launching ETFs. However, it’s essential to note that there’s no guarantee this product will actually be launched. It has merely been filed for regulatory approval.
Established in 2012, 3iQ has made a name for itself as a trailblazer in the digital asset management industry. The company provides an array of investment offerings, such as The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH), which boast impressive net assets. Among its notable products are the Bitcoin ETF (BTCQ) and the Ether Staking ETF (ETHQ), showcasing 3iQ’s commitment to delivering groundbreaking and regulated digital asset solutions.
At press time, SOL traded at $132.
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2024-06-21 09:11