The Canadian asset manager 3iQ has recently filed a preliminary prospectus for a new ETP linked to the crypto Solana (SOL) with the Toronto Stock Exchange (TSX).
The investment vehicle, named The Solana Fund and identified with the symbol QSOL, represents the first Solana ETP (exchange-traded product) to be listed on the Canadian market.
This new tool offers investors an innovative opportunity to access the world of cryptocurrencies through a regulated and recognized platform. Let’s see all the details below.
Summary
Crypto news: the first Solana (SOL) ETP on TSX, QSOL ready to conquer the market
As anticipated, the Canadian asset manager 3iQ has filed a preliminary prospectus for a new financial product linked to Solana (SOL) with the Toronto Stock Exchange (TSX).
The investment vehicle represents the first ETP (exchange-traded product) of Solana to be listed on the Canadian market.
The Solana Fund aims to provide investors with direct exposure to SOL, allowing them to benefit from the growth potential of this emerging digital asset.
The Coinbase Custody Trust Company, LLC will act as the custodian of the fund, ensuring the security of the investors’ holdings.
Furthermore, according to the official statement, 3iQ will use Coinbase Custody’s institutional staking infrastructure to also support the staking of SOL. Thus offering additional yield opportunities to investors.
3iQ boasts solid experience in offering cryptocurrency-based investment vehicles in Canada. The company was a pioneer in launching the country’s first Bitcoin (BTC) and Ethereum (ETH) funds, setting an important precedent in the Canadian financial market.
Greg Benhaim, Executive Vice President of Product and Head of Trading at 3iQ, stated the following:
“3iQ aims to establish a global standard of excellence and we are proud to work closely with the OSC to responsibly enhance the investment landscape in digital assets in Canada.”
The challenges of the cryptocurrency market
Despite the enthusiasm for the launch of the new ETP on Solana, the cryptocurrency market is experiencing a period of volatility. SOL has suffered a significant price drop in recent days, falling from over $200 in April to significantly lower values.
An ETP on Solana could potentially attract new funds for the asset, as happened with Bitcoin at the beginning of the year.
That is when the approval of eleven BTC ETFs by the United States Securities and Exchange Commission led BTC to reach new all-time highs.
However, the general sentiment of the cryptocurrency market seems to be quite cautious. Investors maintain a cautious attitude.
Furthermore, Bitcoin miners are facing difficulties after the cost of mining a BTC exceeded $86,000 at the beginning of this week.
For the cryptocurrency market to fully recover, a significant change in the current trend of Bitcoin will be necessary, which often serves as an indicator for the entire sector.
In conclusion, the launch of The Solana Fund (QSOL) represents a significant step for 3iQ and for the cryptocurrency market in Canada.
It remains to be seen if this new investment tool will be able to reverse the current bear trend and stimulate a new wave of interest and investments in the sector.
Problems for Solana: the value relationship with Ethereum hits a three-month low
Solana and Ethereum are facing a period of turbulence, with their value ratio reaching a three-month low.
This decline in the SOL/ETH ratio raises concerns about Solana’s future performance, especially in light of the speculations about the possible launch of a spot ETF on ether.
In May 2024, rumors about the launch of a spot ETF on ether began to circulate, prompting many investors to withdraw their funds from altcoins like Solana.
This forecast is coming true, with the SOL/ETH ratio having decreased by almost 35% on Binance. As of June 20, 2024, the ratio stands at 0.038, marking the lowest level since mid-March.
According to the cryptocurrency analyst Josh Olszewicz, the recent price action positions Solana for further losses.
Olszewicz highlighted critical technical developments in the SOL/ETH chart, emphasizing the breach of the Ichimoku Cloud support as a key bear indicator.
To further strengthen the bearish outlook, there is the breakdown of a bullish chart pattern known as an ascending triangle. However, the collapse of the SOL/ETH pair below the support line suggests a trend reversal.
Although the immediate prospects for Solana seem bleak, Olszewicz acknowledges the possibility of a temporary recovery of the SOL/ETH ratio.
The potential outflows from the Grayscale Ethereum Trust could fuel these rallies, similar to the situation observed with the Grayscale Bitcoin Trust following the introduction of spot bitcoin ETFs in the United States.
 with the Toronto Stock Exchange (TSX).){kind=link}