3iQ Takes First Step Toward Ambitious SolETF with Solana Fund (QSOL)

June 21, 2024
3iQTakes First Step Towards Ambitious SolETF with Solana Fund (QSOL)

After a wave of speculation and discussion, Canada-based digital asset manager 3iQ, in a bold move signaling a new era for the Solana ecosystem, has taken a decisive first step toward launching the inaugural Solana Exchange Traded Fund (ETF) in North America.

3iQ took a significant step toward launching the first Solana ETF by filing a preliminary prospectus for The Solana Fund (QSOL) in Canada. “This continues our track record of innovation, and if receipt of applicable regulatory approvals is obtained, the Fund would be the first Solana exchange-traded product to be listed in North America,” the digital asset manager said in a post on X on Thursday.

Bloomberg Intelligence ETF analyst James Seyffart clarified the nature of the proposed fund, explaining that it would be a Closed End Fund (CEF) similar to Grayscale’s trust products. However, Seyffart cautioned that there is no guarantee the fund will launch, as the filing is merely an initial step. He also noted that Canada’s CEFs have mechanisms to prevent extreme discounts or premiums.

The discussion around a potential SolETF in the U.S. gained traction online following the submission of spot Ethereum ETF prospectus by several Wall Street giants, including BlackRock, to the SEC earlier this year. This interest has fueled speculation and debate within the industry.

Some industry experts urged caution at the time, with Seyffart predicting that a SOL ETF in the U.S. might be a few years away, contingent on the establishment of a CFTC-regulated futures market and potential legislative developments. While Seyffart anticipated high demand for a SOL ETF, comparable to Bitcoin (BTC) and Ethereum (ETH), he also pointed out the U.S. SEC’s stance on Solana as a security, which could complicate matters. 

Additionally, some industry watchers expressed reservations due to Solana’s previous association with Sam Bankman-Fried, the disgraced founder of FTX currently serving a 25-year prison sentence.

It is worth noting that 3iQ’s filing is in Canada and not in the U.S. Canada had spot Bitcoin and spot Ethereum ETFs before the U.S. even got futures ETFs for either asset. 3iQ followed a similar path with its Bitcoin fund in 2019 before launching exchange-traded funds, Seyffart remarked.

While the future of QSOL and the potential for a SolETF in the U.S. remain uncertain, the initiative highlights the growing interest in Solana and the expanding landscape of digital asset investment products.

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Yona has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Daily is an official media and publication of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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