3iQ Digital Asset Management Files Preliminary Prospectus for North America’s First Solana ETF

On 21 June 2024, 3iQ Digital Asset Management, a leading Canadian digital asset investment firm, has filed a preliminary prospectus for The Solana Fund, aiming to launch North America’s first Solana exchange-traded product (ETP). The Solana Fund plans to list its Class A units on the Toronto Stock Exchange (TSX) under the ticker “QSOL.”

The Solana Fund’s objectives include providing investors with exposure to Solana (SOL), tracking its daily price movements against the US dollar, offering long-term capital appreciation, and generating staking yield through Solana’s network. 3iQ will manage the investment and portfolio for QSOL, utilizing Coinbase Custody’s institutional staking infrastructure.

With a proven track record of pioneering digital asset funds, 3iQ has previously launched The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH), which were the first publicly traded Bitcoin and Ethereum funds in Canada. Moreover, QETH and the 3iQ Ether Staking ETF (TSX: ETHQ) were the first in North America to integrate ether staking into their strategies.

Greg Benhaim, Executive Vice President of Product and Head of Trading at 3iQ, emphasized the company’s dedication to advancing digital asset investment. “We’re proud to work closely with the OSC to responsibly enhance the digital asset investment landscape in Canada. As pioneers in digital asset investment management, we aim to deliver regulated investment vehicles that embody the highest standards for individual and institutional investors,” Benhaim stated.

ETFs play a significant role in the crypto sphere by providing a regulated and accessible way for investors to gain exposure to digital assets. They democratize investment opportunities, offering a straightforward means for individuals and institutions to participate in the cryptocurrency market without the complexities of directly handling digital assets. The introduction of crypto ETFs also enhances market liquidity, increases investor confidence, and fosters broader acceptance of digital currencies as viable investment assets.

Solana, the native asset of the Solana blockchain, is renowned for its high transaction speeds and scalability. These attributes make it a formidable player in the decentralized finance (DeFi) space. Since its inception in 2020, Solana has experienced significant growth, becoming the second-largest smart contract platform by market capitalization and trading volume. Its robust infrastructure, combined with a vibrant ecosystem of DeFi projects, NFTs, and decentralized applications, underscores Solana’s trustworthiness and impact in the crypto market, making it an ideal candidate for 3iQ’s innovative ETP.

3iQ’s move to launch the Solana Fund not only marks a milestone for the firm but also represents a significant advancement for the broader digital asset investment landscape in North America.