Digital asset manager 3iQ has filed for a Solana exchange-traded product (ETP) listing on Canada’s Toronto Stock Exchange (TSE), marking a potential first for North America if approved. The Solana product, known as QSOL, aims to provide shareholders with staking yields accrued from the Solana network.
Filing and Details of QSOL
On June 20, 3iQ announced via X (formerly Twitter) that they had submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada. This initial public offering (IPO) will offer exposure to the digital currency SOL and track the daily price movements of SOL in U.S. dollars. The filing has been submitted to securities regulatory authorities in all Canadian provinces and territories, excluding Quebec.
Staking Yield and Custody
Holders of 3iQ’s Solana ETP may benefit from native SOL staking yields, which the firm estimates to be around 6-8%. Coinbase Custody and Tetra Trust will serve as custodians for the fund, with Coinbase Custody providing exclusive institutional staking infrastructure for the Solana fund.
3iQ’s Cryptocurrency Products
3iQ already has significant experience with cryptocurrency ETFs. Their 3iQ Bitcoin ETF (BTCQ) and 3iQ Ether Staking ETF (ETHQ) are listed on the TSE, boasting net assets of approximately $233 million and $38.7 million, respectively, according to Yahoo Finance. The firm also offers The Bitcoin Fund (QBTC) and The Ether Fund (QETH).
Also Read: Circle Brings Advanced Web3 Features to Solana Blockchain
Historical Context and Market Impact
Canadian securities regulators were pioneers in the cryptocurrency ETF market, approving the world’s first spot Bitcoin ETFs in February 2021, followed by spot Ether ETFs two months later. Bloomberg ETF analyst James Seyffart noted, “Canada had spot Bitcoin and spot Ethereum ETFs before the US even got futures ETFs for either asset.”
Despite interest in the Solana network from U.S. asset managers like Franklin Templeton, no firm has yet announced plans to pursue a spot Solana ETF in the U.S. However, Solana ETPs have seen significant uptake globally, with over $1 billion worth of Solana ETPs available through products like the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe.
