Canada to Welcome Solana ETF as 3iQ Announces Bid

Canada to Welcome Solana ETF as 3iQ Announces Bid

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Canada is set to welcome the first Solana ETF in North America following the proposal by investment fund manager 3iQ. 3iQ heightens the exchange-traded funds (ETFs) race following the Bitcoin and Ethereum ETF approvals by the US Securities and Exchange Commission (SEC). 

The investment management firm announced on Thursday, June 21, plans to unveil spot Solana ETF, which prompts questioning why the US lags behind the neighbor. 

Solana (SOL) ETF Bid in Canada

Canada is set to welcome spot Solana ETFs as the US waits for anticipated approval of the spot Ethereum ETFs S-1s following the nod on 194-b late last month. 

Canadian-based 3iQ revealed that it filed an offering, The Solana Fund (QSOL), whose approval will become the pioneer Solana exchange-traded product (ETP) across North America. 

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The approval of QSOL will become a massive catalyst for Solana, whose market value hovers around $57.5 billion, to rank as the fifth largest crypto per CoinGecko. Solana trails Bitcoin, Ethereum, Tether (USDT), and Binance Coin (BNB), which have higher market value. 

3iQ added that it targets listing the QSOL fund on the Toronto Stock Exchange, reminiscent of an initial public offering (IPO). 

3iQ indicated that the Solana Fund provides easy Solana (SOL) exposure without experiencing technical complexity. The firm added that the Solana Fund is a constituent of its investment strategy, accommodating the staking of SOL to earn rewards. 

3iQ Edges Closer to Unveil Solana ETF

3iQ is already involved in offering Bitcoin- and Ethereum-based ETFs. However, offering QSOL adds weight to the speculation that US regulators could approve Solana-based funds. 

The British bank Standard Chartered anticipates Solana and XRP will join Bitcoin and Ethereum in securing the green light for ETFs from the Gary Gensler-led SEC. 

Standard Chartered’s lead crypto researcher, Geoffrey Kendrick, considers Solana to have a similar core technology to Ethereum. Such similarity makes it difficult for the SEC to indicate that SOLs are securities, given the move to drop such an investigation against ETH. 

The British multinational bank indicated in its Friday note that more crypto ETPs are coming. While the bank’s researchers did not disclose the probable date, they consider it inevitable for the US to have SOL and XRP-based ETFs.  

The Standard Chartered bank’s analysts hailed the paced approval of ETH ETFs, terming it a historic move for traditional investors to purchase shares tracking the price of the second-largest crypto asset. 

WAX and Tether (USDT) co-founder William Quigley echoed Standard chartered prediction, indicating that fund managers will likely shift to the Solana as the next hot new initiative. 

Quigley added that Wall Street packages new offerings to consumers whose success likely attracts copycats. He illustrated the case of Bitcoin spot ETFs as attracting massive investments likely to extend until a significant pullback emerges. 

Solana ETPs Available Globally

Canada approved spot Bitcoin and Ethereum ETFs before the SEC approved them this year. Bloomberg lead ETF analyst James Seyffart hails Toronto for its first move even before the US realized the futures ETFs for both crypto assets. 

Seyffart illustrated that Solana funds exist globally despite their absence in the US. He indicated that individuals will be stunned to discover that Bloomberg already has over $1 billion invested in Solana ETPs approved elsewhere. He added that 21Shares, WisdomTree, and VanEck have issued the SOL-based funds. 

The applicants for spot Ethereum ETFs are anticipating the unveiling soon, prompting them to focus on the funds primarily. Bitwise is leading the campaign with a television advertisement that praises Ethereum as analysts predict the ETH ETFs will be unveiled on July 2.  

Meanwhile, Solana has witnessed a 112.20% surge in trading volume to $1,888,076,529 in the past 24 hours. The increment signals a rise in market activity. 

The plunge in price by 14.20% in the past week has left Solana (SOL) underperforming the global cryptocurrency market, which has also slipped by 5.70% to $2.39 trillion. Solana is 51.74% below its all-time peak of $259.96, realized in November 2021 as per CoinGecko data.

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Phillip Scarbrough
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Phillip Scarbrough

Phillip Scarbrough, a prominent figure in crypto analysis, brilliantly navigates the labyrinth of blockchain technology. With a knack for distilling complex subjects into comprehensible prose, Phillip's articles enlighten a vast audience about the crypto universe. As digital currencies evolve, his seasoned insights remain invaluable to readers worldwide.

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