3iQ Launches Canadian Solana ETF with Figment as Staking Partner

3iQ, a prominent player in the Canadian cryptocurrency investment space, has announced its partnership with Figment to provide staking services for its newly approved Solana exchange-traded fund (ETF). This collaboration marks a significant step in Canada’s ongoing embrace of digital asset financial products, with the ETF set to launch on the Toronto Stock Exchange on April 16 under the ticker SOLQ.

Key Takeaways

• 3iQ’s Solana ETF will be listed on the Toronto Stock Exchange.

• Figment will provide institutional staking services for the ETF.

• The Ontario Securities Commission approved the fund on April 14.

• Expected yields for the ETF are between 6% and 8%.

• Canada continues to lead in crypto ETF adoption compared to the U.S.

Partnership Details

The partnership between 3iQ and Figment is designed to enhance the investment experience for institutional clients by enabling them to stake a portion of their Solana (SOL) holdings. Figment, known for its robust blockchain infrastructure solutions, serves over 700 clients, making it a reliable choice for 3iQ’s staking needs.

Regulatory Approval

The Ontario Securities Commission (OSC) granted approval for 3iQ’s SOL fund on April 14, paving the way for other fund managers, including Purpose, Evolve, and CI, to offer similar SOL ETFs. This regulatory support highlights the growing acceptance of cryptocurrency investment vehicles in Canada.

Expected Performance

3iQ anticipates that its Solana ETF will yield returns between 6% and 8%. This yield is particularly attractive to investors looking for income-generating opportunities in the cryptocurrency space. The ETF will also allow for staking through TD Bank, Canada’s second-largest financial institution, further enhancing its appeal.

Canada’s Crypto ETF Landscape

Canada has been at the forefront of cryptocurrency ETF adoption since 2021, when 3iQ launched its spot Bitcoin ETF, which quickly amassed over $1 billion in net assets. In contrast, U.S. regulators have been slower to approve similar products, with the first spot Bitcoin ETFs only receiving approval nearly three years later.

In October 2023, 3iQ also launched an ETF linked to Ether (ETH), which offers staking rewards, setting it apart from U.S. counterparts that have only recently begun to explore staking options. This proactive approach by Canadian regulators and fund managers has positioned Canada as a leader in the crypto ETF market.

Future Outlook

As the cryptocurrency landscape continues to evolve, the partnership between 3iQ and Figment is expected to attract significant investment into the Solana ecosystem. With U.S. regulators potentially on the verge of approving staking rewards for ETFs, the competitive landscape may soon shift, but Canada remains a step ahead in providing innovative financial products tied to digital assets.

In conclusion, the launch of 3iQ’s Solana ETF, backed by Figment’s staking services, represents a pivotal moment in the integration of cryptocurrency into mainstream finance, showcasing Canada’s commitment to fostering a robust digital asset market.

Sources

• 3iQ’s Canadian Solana ETF selects Figment as staking provider, Cointelegraph.
  
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