Investment fund manager, 3iQ Corp now ranks as the first to file an application to list a spot Solana ETF in Canada. Listing on Canada’s Toronto Stock Exchange (TSX), the ETF product, The Solana Fund (QSOL) will be launched via an Initial Public Offering.
QSOL: An Investment Option for Users
The potential launch of QSOL will give users direct exposure to Solana (SOL), without the technical complexities of digital asset management. In addition, they will be able to receive the daily price movements of the U.S. dollar price of SOL.
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
Furthermore, investors will be permitted to buy and sell Class A Units of the fund on TSX. According to 3iQ, QSOL was filed on a preliminary prospectus with securities regulatory authorities in all Canadian provinces and territories except Quebec.
3iQ disclosed that its assets will be held in cold storage through a strategic partnership with Tetra and Coinbase, prioritizing users’ security. With cold storage, users’ assets are kept safe from cyber threats, giving them peace of mind.
Both Coinbase Custody and Tetra Trust would serve as custodians of the Solana ETF.
Solana ETF to Implement Staking
A key strategy employed by the Solana Fund is the implementation of staking. Accordingly, users can stake SOL to receive incentives. 3iQ estimates a 6-8% range for staking rewards. The firm says these rewards will be reinvested for the benefit of its unit holders after applicable fees are deducted.
With this approach, users’ investments have the potential to grow, providing them with enhanced returns over time. 3iQ plans to facilitate SOL staking in the Solana Fund by utilizing Coinbase Custody’s institutional staking infrastructure.
The anticipation surrounding the potential launch of a spot Solana ETF has been on a high pitch for quite a while. Brian Kelly, the CEO of BKCM LLC, disclosed earlier that Solana could be the next crypto for a spot ETF approval.
His comments came following the launch of spot Bitcoin ETFs and approvals of Ethereum ETF in the US.
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