Coinfeeds Daily → 3iQ Files for North America's First Solana ETP on TSX

3iQ Files for North America's First Solana ETP on TSX

Published: Jun 21, 2024 | Last Updated: Jun 21, 2024
Howard Kane

Canadian asset manager 3iQ aims to provide investors exposure to Solana's price movements and staking yields with its new exchange-traded product.

Canadian asset manager 3iQ is making headlines with its recent filing to launch North America's first Solana exchange-traded product (ETP) on the Toronto Stock Exchange (TSX). This move aims to provide investors with exposure to Solana (SOL) price movements and staking yields from the Solana network. The fund is set to trade under the ticker QSOL.

What is an Exchange-Traded Product (ETP)?

An ETP is a type of security that tracks an underlying asset, such as stocks, commodities, or in this case, cryptocurrencies. ETPs are traded on stock exchanges, making them accessible to individual and institutional investors. They offer a way to invest in assets without directly owning them, providing liquidity and ease of trading.

Why Solana?

Solana is a high-performance blockchain known for its fast transaction speeds and low costs. It has gained significant attention in the crypto world, making it an attractive option for investors looking to diversify their portfolios. By launching a Solana ETP, 3iQ aims to tap into this growing interest and provide a new avenue for investment.

3iQ's Track Record

3iQ is no stranger to pioneering in the crypto ETF space. The company previously launched Canada's first Bitcoin and Ether funds, setting a precedent for innovative financial products. With the Solana ETP, 3iQ continues its trend of offering cutting-edge investment options.

How Will the Solana Fund Work?

The Solana Fund will be managed by 3iQ, with Canaccord Genuity Corp. acting as the agent. The fund aims to provide long-term capital appreciation by tracking the price of SOL. Additionally, 3iQ plans to stake SOL to earn rewards, which will be passed on to the fund's investors. Staking involves participating in the network's consensus mechanism, earning rewards in the form of additional SOL tokens.

What Does This Mean for Investors?

For investors, the launch of the Solana ETP offers a new way to gain exposure to the rapidly growing Solana ecosystem. It provides a more straightforward and regulated method to invest in SOL, without the complexities of managing private keys or navigating crypto exchanges. Both individual and institutional investors can benefit from the liquidity and ease of trading that comes with an ETP.

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