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After spot exchange-traded funds (ETFs) for Bitcoin are firmly established in the United States and Ethereum ETFs were first approved late last month, a new proposal for Solana ETFs in Canada emerged on Thursday.
Canadian investment fund manager 3iQ has announced that it has registered to offer the Solana Fund (QSOL), which – if approved – will be “the first Solana exchange-traded product listed in North America.”
With a market cap of $61 billion at the time of writing, Solana (SOL) is the fifth largest cryptocurrency behind Bitcoin (BTC), Ethereum (ETH), dollar-pegged Tether (USDT), and Binance Coin (BNB).
3iQ said the fund will be listed on the Toronto Stock Exchange “in connection with an initial public offering.”
“The Solana Fund offers easy exposure to SOL without the technical complexity,” the company wrote. “As part of our investment strategy, the Solana Fund holds SOL for rewards.”
The company has already offered ETFs based on Bitcoin and Ethereum, but Solana's move to support it adds weight to speculation about which cryptocurrencies the US regulators will next approve of such funds.
British bank Standard Chartered predicts that Solana and XRP will be the next coins to get the green light for ETF treatment from the Securities and Exchange Commission (SEC).
“In many cases, the underlying technology is similar to ETH, so it would be hard for the SEC to say that ETH's position is warranted,” wrote Jeffrey Kendrick, head of crypto research at Standard Chartered.
Tether and WAX co-founder William Quigley agreed that it's inevitable that cryptocurrency fund managers will soon become the “next hot new thing” in Solana as an alternative.
“Every time Wall Street sets out to sell a new product to consumers, if the product succeeds, they can guarantee there will be copies,” he said, pointing to the huge investments flowing into Bitcoin spot ETFs. We will continue to see new EFs launched until there is a big comeback.
Bloomberg analyst James Seifert tweeted: “Before the US had futures ETFs for both assets, Canada had a Bitcoin and Ethereum ETF. He also pointed out that the Solana Fund is not a new thing at the international level.
We have more than $1 billion in Solana ETFs, including a list of funds from providers such as 21Shares, VanEck and WisdomTree, he tweeted.
In the US, attention has largely focused on the launch of spot Ethereum ETFs, which were unexpectedly approved by the SEC last month. Bitwise launched a TV ad for Ethereum earlier today, with analysts predicting the currency will be released on July 2nd.
Edited by Andrew Hayward.
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