Canadian investment firm 3iQ seeks to launch first-ever North American Solana ETP

In a move that could expand investor access to Solana (SOL), Canada’s leading investment management company 3iQ, on Thursday, filed a prospectus with the Ontario Securities Commission (OSC) to launch a new exchange-traded product (ETP) on the Toronto Stock Exchange (TSX), focused solely on cryptocurrency.

The ETP, dubbed “Solana Fund,” will trade under the ticker symbol QSOL if approved by the OSC and would be the first of its kind in North America, allowing investors to gain exposure to the price movements of SOL without having to need to buy and hold directly. the underlying asset or navigate the complexities of blockchain technology.

Streamlined Solana Exposure for Traditional Investors

Exchange traded products are structured investment vehicles that track the underlying price of an asset, similar to stocks or ETFs that track traditional assets like gold or oil. In the case of 3iQ’s Solana ETP, the fund would hold SOL tokens and the value of the ETP would fluctuate based on the price of SOL.

For investors interested in gaining exposure to SOL but unfamiliar or uncomfortable with cryptocurrency wallets and exchanges, a Solana ETP offers a more familiar and potentially more accessible investment route—an opportunity, in fact , to diversify their cryptocurrency portfolios. According to recent market data, institutional interest in crypto assets is at an all-time high, with SOL often touted as a top pick due to its technological advancements and strong developer community.

Potential Benefits of a Solana ETP

Launching a Solana ETP, with SOL’s Proof of History (PoH) consensus mechanism, in Canada could bring several potential benefits to investors and the broader cryptocurrency ecosystem:

1. Increased investor adoption: By providing a regulated and transparent investment vehicle, a Solana ETP could attract new investors to the cryptocurrency space, potentially accelerating the widespread adoption of Solana.

2. Improved liquidity: The introduction of an ETP could improve Solana’s liquidity, making it easier for investors to buy and sell the cryptocurrency. This increased liquidity could benefit institutional and individual investors.

3. Simplified investment process: For investors who are new to cryptocurrencies or hesitant to deal directly with cryptocurrency exchanges, a Solana ETP offers a familiar and potentially more streamlined investment process.

Regulatory approval key for launch

While the potential benefits of a Solana ETP are significant, the product launch is dependent on obtaining OSC approval. The regulatory landscape surrounding cryptocurrencies in Canada is still evolving, and the OSC’s decision will likely set a precedent for future cryptocurrency ETP listings.

3iQ has a history of launch innovative cryptocurrency products in Canada, after having already obtained approval of a Bitcoin ETF in 2020. The company’s experience navigating the regulatory landscape could prove beneficial in expediting the SOL ETP approval process. So, although the application represents a significant step forward, the launch of the ETP is not yet a done deal.

Potential Impact on Solana Price

News of 3iQ’s application to launch a Solana ETP has already generated positive sentiment within the cryptocurrency community. If approved, the ETP could provide a significant boost to Solana’s adoption and potentially drive up its price.

However, it is important to keep in mind that the cryptocurrency market remains volatile and the price of SOL is subject to a wide range of factors beyond the launch of an ETP.

At press time, Solana (SOL), which ranks fifth among cryptocurrencies in terms of market capitalization, according to Coinmarketcap data– is trading today at a real price of just $132, down almost 4% since yesterday, with a large 24-hour trading volume of around $2.46 billion and a current market cap which stands at an impressive $62.75 billion.

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