Canada Appoints Figment for 3iQ’s Solana ETF Staking
In a significant development for the digital asset sector, Figment has been appointed as the staking provider for 3iQ’s newly sanctioned Solana exchange-traded fund (ETF) in Canada. This decision highlights Canada’s proactive approach to integrating digital financial products into its market.
Scheduled to debut on the Toronto Stock Exchange on April 16, the fund will trade under the ticker SOLQ as confirmed by both companies involved. Figment, which supports over 700 clients with its staking infrastructure, will facilitate institutional staking for the 3iQ Solana View More Staking ETF.
Approval and Competitive Landscape
The approval from the Ontario Securities Commission (OSC), a regional financial regulatory body in Canada, was granted to 3iQ’s SOL fund on April 14. This green light wasn’t exclusive to 3iQ; multiple fund managers, including Purpose Financial, Evolve Funds Group, and CI Financial, have also received permissions to launch their respective SOL ETFs.
Notably, these funds are allowed to stake a part of their SOL holdings through TD Bank, Canada’s second largest bank by assets, as reported by Bloomberg ETF analyst Eric Balchunas. According to 3iQ’s website, the Solana ETF is projected to yield returns ranging from 6% to 8% for investors, positioning the fund attractively in the growing digital asset investment landscape.
Canada’s Leadership in Crypto ETFs
As the United States continues to deliberate on the approval of various cryptocurrency funds, Canada has distinctly taken the lead since 2021 with its innovative approach to crypto ETFs. In that year, 3iQ launched its spot Bitcoin ETF, which swiftly surpassed $1 billion in assets. Conversely, it took US regulators nearly three additional years to approve similar products, which eventually saw remarkable success, accumulating over $38 billion in net inflows in their inaugural year.
Future Developments and Diversification
Further diversifying their portfolio, 3iQ introduced an ETF focused on Ether in October 2023, granting investors access to the Ethereum blockchain while also offering staking rewards, a unique feature compared to the Ether ETFs approved later in the US. Recent reports suggest that US regulators might soon allow staking rewards, marking a potential shift in the regulatory landscape following the establishment of options contracts linked to Ethereum.
