Canada-based digital asset manager 3iQ has filed a prospectus with the Ontario Securities Commission to launch North America’s maiden publicly traded Solana ETP on the Toronto Stock Exchange [TSE].
The fund, officially called the Solana Fund, will trade under the ticker QSOL if approved by the commission.
Coinbase Custody, along with Tetra Trust, will serve as custodians. Alongside, the former will also provide the Solana Fund with staking infra. Elaborating on the same via a recent post on X, Coinbase noted,
“As part of the partnership, 3iQ Corp will leverage our institutional custody infrastructure to introduce Solana staking to Canada's ETP space.”
As part of 3iQ’s investment strategy, the Solana Fund will stake SOL to earn rewards. Staking fetches passive income, with estimated yields ranging in the 6% to 8% bracket. These rewards, after deducting applicable fees, will be reinvested by the asset management company to further benefit unit holders.
Bloomberg analyst James Seyffart brought to light that Canada has been on the forefront when it comes to crypto ETFs. Spot Bitcoin and Ethereum ETFs were already green-flagged there even before the US launched its futures products for either asset.
The latest product is a ‘closed-end fund.’ It would trade in a similar fashion to Grayscale Trust products. That being said, it should be noted that Canada's closed-end funds have mechanisms to prevent the discounts or premiums from getting too extreme.
Seyffart cautioned investors not to get their hopes too high, for this product’s prospectus has only been filed for now and there is no guarantee that it will be launched.
At the moment, more than $1 billion worth of Solana ETPs are already live in different parts of the world. They include ETC Group’s Physical Solana product and 21Shares’ Solana Staking ETP in Europe.
In other ETF-related news, the first spot BTC ETF went live on Australia’s main stock exchange, ASX, a day back. As pointed out in a recent article, over 99,791 shares were traded on the debut day.
