On Thursday, 3iQ Digital Asset Management announced the filing of a preliminary prospectus for The Solana Fund (QSOL) with securities regulatory authorities across Canada, excluding Quebec. If approved, QSOL will become the first Solana (SOL) exchange-traded product (ETP) listed in North America, trading on the Toronto Stock Exchange (TSX) under the ticker 'QSOL.'

A Milestone for 3iQ

This prospective listing marks a significant milestone for 3iQ, a global digital asset investment solutions leader. The firm has a robust history of being first in the digital asset sector, including launching the first publicly traded Bitcoin and Ether funds in Canada.

The launch of QSOL is anticipated to provide a regulated investment vehicle that embodies the highest standards for individual and institutional investors. This development aligns with 3iQ's mission to deliver accessible crypto asset investment options.

Investment Goals

QSOL aims to offer investors exposure to the digital currency SOL, its daily price movements in US dollars, and the opportunity for long-term capital appreciation. Additionally, the fund will leverage staking yields from the Solana network, estimated to range between 6% and 8%.

Greg Benhaim, Executive Vice President of Product and Head of Trading at 3iQ, emphasized the company's commitment to innovation and regulatory compliance: '3iQ seeks to set a global standard of excellence, and we're proud to work closely with the OSC to enhance the digital asset investment landscape in Canada responsibly.'

Strategic Partnerships

3iQ has partnered with Canaccord Genuity as the agent for the offering, while Tetra Trust and Coinbase Custody Trust Company, LLC will serve as custodians.

The fund will also utilize Coinbase Custody's institutional staking infrastructure, which is crucial for supporting SOL staking. While this is a first for North America, Solana ETPs have already made their mark globally.

Products like the 21Shares Solana Staking ETP and the ETC Group Physical Solana product in Europe represent over $1 billion in assets. The approval and subsequent success of QSOL could pave the way for further Solana-based investment products in North America.

Canada's Progressive Stance

James Seyffart, Bloomberg ETF analyst, noted the significance of Canada's progressive stance on cryptocurrency ETFs: 'Canada had spot Bitcoin and spot Ethereum ETFs before the US even got futures ETFs for either asset.'

However, Seyffart also emphasized that this isn't an Exchange Traded Fund (ETF), stating, 'I was wrong. This is a Closed-End Fund. So, it would be more similar to one of the Grayscale trust products. Canada's closed-end funds have mechanisms to prevent the discounts or premiums from getting too extreme.

3iQ did this with a Bitcoin fund in 2019 before launching ETFs. There is also no guarantee that this thing will launch. It's just been filed.'

3iQ's Legacy

Founded in 2012, 3iQ has become a pioneering force in digital asset management. The company offers a range of investment products, including The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH), with substantial net assets.

The Bitcoin ETF (BTCQ) and the Ether Staking ETF (ETHQ) are among its flagship products, reflecting its dedication to providing innovative and regulated digital asset solutions.