Solana ETF Proposed By 3iQ Aims For First North American Approval On Toronto Stock Exchange

Updated: 21 June 2024

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Fund manager 3iQ has filed for a Solana ETF (exchange-traded fund) to be listed on Canada’s Toronto Stock Exchange (TSE), potentially making it the first such product to gain approval in North America.

“We have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering,” 3iQ said in a Jun. 20 X post.

A Solana ETF Could Start Trading In All Canadian Territories Except Quebec

3iQ’s Solana ETF filed a preliminary prospectus with securities regulators in every Canadian province and territory except Quebec, according to the asset manager.

If approved, QSOL will offer investors “exposure” to Solana’s native SOL token, and will track the “daily price movements of the U.S. dollar price.”

QSOL holders might be able to accumulate interest from staking yield opportunities within the Solana ecosystem as well. 3iQ estimates that this interest rate could be between 6% and 8%.

To custody the funds, 3iQ will utilize Coinbase Custody and Tetra Trust. Coinbase Custody will also provide QSOL with exclusive institutional staking infrastructure.

🚨BREAKING: @coinbase institutional announces that it will be the custodian for North America's first Solana ETP, by @3iQ_corp. pic.twitter.com/PsptltPM3y

— SolanaFloor (@SolanaFloor) June 20, 2024

Canada Beats The US In Crypto ETF Approvals

QSOL is not the first crypto-focused fund by 3iQ. The digital asset manager already has several crypto ETFs.

Its biggest digital asset funds listed on the TSE are the 3iQ Bitcoin ETF (BTCQ) and the 3iQ Ether Staking ETF (ETHQ). BTCQ currently holds around $233 million, while $38.7 million has been invested in ETHQ, according to Yahoo Finance data. 3iQ also has The Bitcoin Fund (QBTC) as well as the Ether Fund (QETH).

All of the asset manager’s funds were launched after Canadian securities regulators approved the launch of the world’s first spot Bitcoin ETFs at the start of 2021.

Similar products for Ethereum were launched just two months later. This is almost 3 years before spot Bitcoin ETFs got approved and launched in the US in January.

UPDATE: 3iQ just filed to launch the first Solana ETF in Canada (and thus North America). Looking to launch under the ticker $QSOL. Canada had spot Bitcoin and spot Ethereum ETFs before the US even got futures ETFs for either asset. h/t @alextapscott https://t.co/Ra6vDdepil pic.twitter.com/LRO4NJWhAr

— James Seyffart (@JSeyff) June 20, 2024

“Canada had spot Bitcoin and spot Ethereum ETFs before the US even got futures ETFs for either asset,” Bloomberg ETF analyst James Seyffart noted in an X post yesterday.