3iQ Launches Solana ETP
Digital asset management company 3iQ has filed a preliminary prospectus for the Solana Fund (QSOL) to list the Solana (SOL) exchange-traded product (ETP) on the Toronto Stock Exchange (TSE) in Canada. The move marks a major step towards launching the first Solana ETP in North America.
SOL daily price trend and staking yield are transparent, Coinbase Custody and Tetra Trust serve as custodians
QSOL aims to let investors understand SOL's daily price trend and potential staking yield, which is expected to be 6-8%. Coinbase Custody and Tetra Trust will serve as custodians, and Coinbase Custody provides institutional staking infrastructure.
3iQ manages the Bitcoin ETF (BTCQ) and the Ethereum Staking ETF (ETHQ) on the TSE, with total assets under management of approximately US$233 million and US$38.7 million, respectively. The company also offers a Bitcoin Fund (QBTC) and an Ethereum Fund (QETH).
Canada's Regulatory Environment
Canada, known for its pro-cryptocurrency stance, approved the world's first spot Bitcoin ETF in February 2021, and a spot Ethereum ETF shortly thereafter. This regulatory environment puts Canada in a leading position in the issuance of cryptocurrency ETFs compared to the United States.
While there are more than $1 billion worth of Solana ETPs around the world (including in Europe), no U.S. company has announced plans to launch a spot Solana ETF. 3iQ’s move to apply for QSOL reflects a broader trend of growing interest in cryptocurrency ETFs.
Industry leaders such as ARK Invest’s Cathie Wood and Ripple’s Brad Garlinghouse have expressed optimism about the Solana ETF, echoing sentiment following the approval of the previous Ethereum ETF. However, Cboe’s Rob Marrocco remains cautious due to the absence of a Solana futures market, which could delay the launch of a U.S. ETF.
SEC Chairman Gary Gensler: Ethereum ETF could receive regulatory approval by late summer
The cryptocurrency world has experienced its ups and downs in recent days as prices fluctuate and investor expectations mount. However, Gary Gensler’s recent statement offers a glimmer of hope. The SEC Chairman has stated that an Ethereum ETF could indeed receive regulatory approval by late summer. Such a scenario would undoubtedly mark a decisive turning point for digital asset investing.
Approval is coming!
In an interview with Bloomberg, Eric Balchunas, senior ETF analyst, said that the SEC’s comments on the S-1 filing were relatively minor, suggesting that approval could come before July 2. Still, the SEC did not specify an exact timeline for approval, saying only that it would occur sometime this summer, depending on the response of the issuer.
The U.S. Securities and Exchange Commission (SEC) has approved Form 19b-4 for eight Ethereum ETF issuers, including industry giants such as BlackRock, Fidelity, and VanEck. Final approval of the S-1 form remains the last hurdle before trading can begin.
Speculation grows about Solana and XRP as next ETF approval candidates
There is disagreement over which cryptocurrency will receive the next ETF approval. BKCM CEO Brian Kelly and Matrixport co-founder Daniel Yan both said Solana could be the next candidate. Institutional views, including Standard Chartered, also suggest that XRP and Solana ETFs could be approved by 2025. The recent approval of the Ethereum ETF has fueled discussions about the next potential contender.
XRP community optimistic about ETF approval in 2025
The XRP community remains optimistic about ETF approval by 2025. A recent survey showed that 66.1% of respondents believe in the possibility of XRP ETF approval during this time. However, the ongoing legal issues between Ripple and the SEC pose a significant obstacle. Despite this, Ripple CEO Brad Garlinghouse remains confident, emphasizing that XRP and BTC are the only cryptocurrencies with clear regulation, which could benefit XRP's approval prospects once the legal issues are resolved.
The war between Ripple and the SEC is intensifying!
The latest development, in the recent legal action, the U.S. District Court for the Northern District of California dismissed a major class action lawsuit against Ripple, giving the company a procedural victory. Ripple's Chief Legal Officer Stuart Alderoty expressed satisfaction with the dismissal of the federal class action lawsuit for unregistered securities and violations of state law.
Despite dismissing the lawsuits, the court deferred to a jury the key question of whether XRP constitutes a security. That decision hinges on whether XRP meets the criteria outlined in the Howey test.
Ripple CEO Brad Garlinghouse to go to trial
In a related civil securities lawsuit, a California judge ruled that Ripple CEO Brad Garlinghouse will go to trial on allegations of misleading statements about a 2017 XRP sale. The trial seeks to determine whether Garlinghouse's actions influenced investors' decisions.
Judge Phyllis Hamilton's ruling contrasts with that of New York Judge Analisa Torres, who previously concluded that XRP did not qualify as a security under certain conditions. Legal analysts including Fred Rispoli have speculated that the California case could be settled because of the perceived risks and damages.
Upcoming Legal Actions
Both parties have been directed to revisit motions to seal documents by July 8, 2024. Final decisions on those motions will follow and could affect the scope of future legal proceedings.
Ripple achieved a partial victory in dismissing the class-action lawsuit claims, but XRP’s status as a security remains unresolved and awaits jury deliberations.
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