SOL ETF Incoming? 3iQ Pioneers Solana-Focused Investment Product in Canada

• 3iQ launches North America’s first Solana ETP, boosting SOL’s investment accessibility on the TSX.
• Solana Fund (QSOL) aims for capital appreciation and staking yield, attracting diverse investor interest.
• Despite a recent price dip, Solana shows strong trading activity and potential for near-term price consolidation.

3iQ Digital Asset Management has unveiled plans to launch North America’s first Solana exchange-traded product (ETP) , hence the possibility of SOL ETF as highlighted by Coin Bureau. This initiative, announced on June 20, 2024, marks a significant step for 3iQ, a global leader in digital asset investment solutions. 

The firm has filed a preliminary prospectus for The Solana Fund (QSOL) with regulatory authorities across Canada, excluding Québec. The fund will offer Class A and Class F units, with an application to list the Class A units on the Toronto Stock Exchange (TSX) under the ticker “QSOL”.

The primary objective of the Solana Fund is to provide unitholders with exposure to Solana (SOL) and track its daily price movements in U.S. dollars. Additionally, the fund aims to offer opportunities for long-term capital appreciation and generate staking yield from the Solana network. 

3iQ will manage the fund, with Canaccord Genuity acting as the offering’s agent. Tetra Trust and Coinbase Custody Trust Company, LLC will serve as custodians, utilizing Coinbase Custody’s institutional staking infrastructure to support SOL staking in the fund.

This strategic move positions 3iQ as a pioneer in Solana-focused investment products in North America. By listing on the TSX, the fund gains accessibility and legitimacy, potentially attracting a diverse range of investors interested in blockchain technology and digital assets. 

At press time, Solana’s price stands at $132.57, reflecting a 2.68% decline over the last day. Solana’s price peaked at around $136.29 before experiencing a decline to the current level. The short-term trend shows a bearish pattern, with support levels at $133 and $130, while resistance levels are at $136.29 and $135. 

This price movement is accompanied by a market cap of approximately $61.25 billion, down 2.58% over the last day, indicating a decrease in investor confidence or profit-taking activities. However, the 24-hour trading volume has increased by 5.74% to $2.23 billion, suggesting heightened trading activity despite the price decline.

Moreover, Solana’s one-week Relative Strength Index (RSI) is at 49.89, indicating a neutral position, while the one-day Moving Average Convergence Divergence (MACD) trading below the signal line at 16.61 points to a bearish trend in the short term.