3iQ Digital Asset Management has filed a preliminary prospectus for The Solana Fund (QSOL) with Canadian securities regulators, excluding Quebec. If approved, QSOL will be the first Solana (SOL) exchange-traded product (ETP) listed in North America, trading on the Toronto Stock Exchange (TSX) under the ticker “QSOL”.
This listing represents a significant achievement for 3iQ, which has a history of pioneering digital asset investment solutions, including the first publicly traded Bitcoin and Ether funds in Canada. QSOL aims to provide investors with exposure to SOL, its daily price movements in US dollars, and the potential for long-term capital appreciation. The fund will also leverage staking yields from the Solana network, estimated at 6-8%.
Greg Benhaim, Executive Vice President of Product and Head of Trading at 3iQ, highlighted the company's dedication to innovation and regulatory compliance, stating their goal to set a global standard of excellence in digital asset investment. Canaccord Genuity will act as the offering's agent, with Tetra Trust and Coinbase Custody Trust Company, LLC serving as custodians. The fund will utilize Coinbase Custody’s institutional staking infrastructure to support SOL staking.
QSOL is expected to offer a regulated investment vehicle for both individual and institutional investors, in line with 3iQ’s mission to provide accessible crypto asset investment options. Although this is the first Solana ETP in North America, similar products in Europe, like the 21Shares Solana Staking ETP and the ETC Group Physical Solana product, manage over $1 billion in assets.
James Seyffart, a Bloomberg ETF analyst, noted Canada's progressive stance on cryptocurrency ETFs. However, he clarified that QSOL is a closed-end fund, not an ETF, similar to Grayscale trust products but with mechanisms to prevent extreme discounts or premiums. Founded in 2012, 3iQ continues to lead in digital asset management with innovative and regulated products like The Bitcoin Fund (TSX: QBTC) and The Ether Fund (TSX: QETH).$SOL
