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Canadian Digital Asset Manager 3iQ Files Preliminary Prospects for First Solana ETP

Sujha Sundararajan
Last updated: | 1 min read
Solana ETP

With Bitcoin and Ethereum spot Exchange-traded funds (ETFs) on the plate, Solana could be the next in line with what this Toronto-based crypto fund is planning.

3iQ, a digital asset fund manager, has filed for a Solana (SOL) exchange-traded product (ETP) Toronto Stock Exchange (TSE). The company has submitted a preliminary prospectus for the fund dubbed – QSOL.

The company wrote that if the fund receives regulatory approval, it would become the first SOL ETP to be listed in North America.

Further, the Solana ETP is aimed to offer exposure to the altcoin and track the daily price moments of SOL/USD. The fund will also provide opportunity for long-term capital appreciation, along with network-generated staking yield, 3iQ press release noted.

3iQ launched both Bitcoin and Ethereum funds, which became the first publicly-traded crypto funds in Canada.

Why Solana ETPs?

According to 3iQ, Solana has impressive transaction speeds and scalability, and is often seen as the next in-line after Ethereum.

Additionally, Solana has been attracting developers and users with its “proof-of-stake consensus mechanism,” 3iQ wrote. It is also the second-largest smart contract platform by trading volume and market cap, thus opening doors for possible exploration of SOL ETP.

Solana is the fifth-largest crypto after Bitcoin (BTC), Ether (ETH), dollar-pegged Tether (USDT) and Binance Coin (BNB). It has a market cap of over $60 billion at press time.

“Solana offers a robust environment for the next generation of decentralized finance (DeFi) applications and is the natural next choice of digital asset for 3iQ to structure into an ETP.”

In-Line With Standard Chartered Prediction

Last month, British multinational bank Standard Chartered predicted that Solana would soon get their own ETFs. Geoffrey Kendrick, Head of Forex and Digital Assets Research at Standard Chartered Bank, predicted that crypto ETFs for Solana might be approved by 2025.

Kendrick noted that Ethereum ETF approval sets as a precedent for similar cryptos such as Solana. The bank’s interest in crypto ETFs approval has fueled speculation and optimism around Solana.