3iQ Seeks Approval for Canada’s First Solana ETF

Digital asset manager 3iQ has filed for the registration of Canada’s first Solana ETF, offering staking rewards of 6-8% annually.

3iQ Corp. is pleased to announce that we have submitted a preliminary prospectus for The Solana Fund (QSOL) in Canada in relation to an initial public offering.

This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the… pic.twitter.com/7ghv05f8gU

— 3iQ Digital Asset Management (@3iq_corp) June 20, 2024

The listing is planned for the Toronto Stock Exchange (TSE).

Coinbase Custody and Tetra Trust will serve as custodians for the product. The former will also provide the infrastructure for staking participation.

The company has submitted documents to securities regulators in all provinces and territories of Canada, except Quebec.

Currently, 3iQ manages the 3iQ Bitcoin ETF (BTCQ) and 3iQ Ether Staking ETF (ETHQ), both traded on the TSE. The AUM of the former is $233 million, while the latter stands at $38.7 million.

In February 2021, Canada became the first country to approve an exchange-traded product based on the first cryptocurrency. In April, the country’s regulators approved the trading of an ETH-ETF.

According to Bloomberg analyst James Seyffart, investors have poured over $1 billion into various Solana-based funds.

You guys would be stunned to realize we already have over $1 Billion in Solana ETPs elsewhere in the world!! pic.twitter.com/y3zSZrHJGo

— James Seyffart (@JSeyff) June 20, 2024

Previously, Matrixport co-founder Daniel Yan suggested Solana as the next candidate for an ETF launch. Jeffrey Kendrick, head of research at Standard Chartered, also predicted the emergence of an exchange-traded fund on SOL in 2025. 

This view is shared by Ripple CEO Brad Garlinghouse and Galaxy Digital CEO Mike Novogratz.

JPMorgan expressed doubts about such a scenario, citing the interpretation of the SEC that most digital assets are considered securities.