3iQ, a Canadian investment firm, has recently filed a prospectus with the Ontario Securities Commission to launch the Solana Fund, which would be the first Solana exchange-traded product to be listed in North America. If approved, the fund will debut on the Toronto Stock Exchange under the QSOL ticker. Solana, launched in 2020, is currently the fifth-largest cryptocurrency with a market cap of $61.48 billion. The Solana Fund will offer holders exposure to SOL’s daily price movements and staking yields, estimated to be around 6-8%.
Canada has been progressive in its stance towards cryptocurrency investments, with 3iQ being one of the first firms to debut publicly traded Bitcoin and Ethereum funds in the country. The approval of spot Bitcoin and Ether ETFs by Canadian regulators in February 2021 has set a precedent for further approvals of crypto assets for ETFs. In the United States, the approval of spot Ethereum ETFs by the SEC is expected to pave the way for more crypto funds to list on stock exchanges. UK-headquartered bank Standard Chartered has predicted that Solana and XRP could be the next coins to receive approval for ETFs from the SEC.
Despite the impending launch of the Solana ETF in Canada, the SOL price has been facing a decline, currently at $133.84. However, analysts predict that the SOL ETP will have a bullish impact on the asset’s price, similar to the success seen with spot Bitcoin ETFs. As the demand for crypto investment vehicles grows, the approval of more ETFs for different cryptocurrencies will provide investors with more opportunities to access the digital asset class through regulated means. The launch of the Solana Fund in North America signals a step towards enhancing the digital asset investment landscape in the region.
