Coinbase becomes a custodian partner for the first SOL-based ETP in North America

The product from 3iQ is awaiting approval from the Canadian regulator

21.06.2024 - 10:15

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3 min

Last updated on Aug 5, 2024

What’s new? Crypto exchange Coinbase will become a custodian partner for North America’s first exchange-traded product (ETP) based on the native token of the Solana (SOL) blockchain from Canadian digital asset management company 3iQ. 3iQ is currently awaiting regulatory approval to launch the product.

Источник: X.com

What else is known? The fund under the ticker QSOL will be launched via an IPO on the Toronto Stock Exchange (TSX). Coins purchased by the fund on behalf of investors will be staked, allowing them to earn a passive income of 6-8%.

“As part of the partnership, 3iQ Corp will leverage our institutional custody infrastructure to introduce Solana staking to Canada’s ETP space,” the exchange’s representatives said.

3iQ currently manages the 3iQ Bitcoin Exchange Traded Funds (ETFs) 3iQ Bitcoin ETF (BTCQ) and 3iQ Ether Staking ETF (ETHQ), as well as closed-end funds The Bitcoin Fund (QBTC) and The Ether Fund (QETH). Also available to accredited investors is the 3iQ Global Cryptoasset Fund, a multi-currency fund whose portfolio includes bitcoin, Ethereum, Solana, Stacks, NEAR Protocol, Render, Maker, and Chainlink.

As reported by analysts at the investment firm CoinShares, outflows from crypto derivatives in Canada totaled $14,9 million last week.

Coinbase is the custodian of 90% of all assets held in spot bitcoin ETFs in the United States, with $56,41 billion under management. In late May, it was selected by Grayscale as the custodian for the spot ETH ETF. These products have not yet received regulatory approval, but the exchange could eventually become the primary asset custodian for them as well.

Additionally, Coinbase is already the second-largest validator of the Ethereum blockchain, which has some experts concerned about centralization.

Standard Chartered expects SOL and XRP-based ETFs to be approved in 2025

The bank’s analyst also approved a prediction for ETH to grow to $8000 by the end of the year

Amid the expectation of approval of spot ETH ETFs in the US, Ripple CEO Brad Garlinghouse allowed the possibility that similar products based on XRP, SOL, and ADA will appear on the market after them.

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