The First SOL ETP in North America Is in Development – Great News for Solana
With the launch of Bitcoin ($BTC) and Ethereum ($ETH) ETFs this year, the crypto community was looking forward to a similar Solana ($SOL) development, and now it's here.
Digital asset manager 3iQ is developing the first $SOL ETP in North America, The Solana Fund ($QSOL).
The company sent the preliminary prospectus to all Canadian security regulatory authorities (except for Quebec) and is currently waiting for a decision.
Already, the 24-hour trading volume of Solana assets is up 20.43%, with several coins gaining in the last day ($BOME +1.95%, $MPLX +6.07%, and $CAW +15.17%).
Canada implemented $BTC and $ETH ETFs in 2021, three years before the US, which makes $SOL enthusiasts hopeful about $QSOL's future.
Let's examine how the upcoming ETP will impact the Solana market and whether investors can profit from this development.
Over $1B Solana ETPs Worldwide with Canada Next in LineJames Seyffart (an ETF analyst) highlighted that there are over $1B $SOL ETPs globally, with $QSOL being the most recent.
You guys would be stunned to realize we already have over $1 Billion in Solana ETPs elsewhere in the world!! pic.twitter.com/y3zSZrHJGo
- James Seyffart (@JSeyff) June 20, 2024
A primary advantage of owning $QSOL is the 6-8% staking APY. In another post, Seyffart mentioned two other key benefits:
- Exposure to Solana trading for non-crypto investors, which could boost $SOL's price
- Long-term capital appreciation for investors
Tetra Trust and Coinbase Custody will be custodians, with the latter offering an exclusive staking infrastructure for the $SOL ETP.
In truth, a $SOL ETF was anticipated ever since the $ETH ETF approval, but no one had yet taken the plunge. In January 2024, Franklin Templeton (a trillion-dollar asset management firm) praised Solana's lower informational asymmetry' and the increased activity in Q4 2023 (like DeFi, meme coins, and NFTs).
3iQ's $SOL ETP is a welcome addition to Canada's friendly history with cryptocurrencies (they approved $BTC and $ETH ETFs three years before the US did). This suggests that $QSOL'sapproval is only a matter of time, which bodes well for the blockchain.
Solana Trading Volume Spikes, Meme Coins Exit the Red ZoneWhen we covered the Solana ETF rumors in May, we had already seen the beginning of a buzz around $SOL meme coins.
In the last 24 hours, Solana's trading volume jumped to $59B, a 20.43% increase. This also translates to daily gains for $SOL meme coins:
We might see acontinuation of last month's surge in $SOL investor interest. If Canadian security regulatory authorities approve the $SOL ETPs, it's not a matter of if' but when' the Solana ecosystem pumps.
Can $SOL ETPs Send Solana Soaring?Based on what happened to the Ethereum and Bitcoin blockchains after their ETF approval, we can safely surmise that Solana might see a similar development from the approval of its ETPs.
Meme coins, in particular, might see a significant increase in investor interest as staking through $QSOL becomes more accessible to non-crypto enthusiasts.
With many $SOL meme coins offering attractive staking rewards, especially during the presale, growing interest around ETPs might lead to another meme coin frenzy.
The post The First SOL ETP in North America Is in Development - Great News for Solana appeared first on The Tech Report.