Figment Chosen for 3iQ's New Solana ETF Staking

Blockchain infrastructure provider Figment has been chosen as the staking provider for 3iQ’s newly approved Solana exchange-traded fund (ETF), highlighting Canada’s ongoing efforts to adopt digital asset financial products.

Figment will facilitate institutional staking for the 3iQ Solana (SOL) Staking ETF, which is set to launch on the Toronto Stock Exchange on April 16 under the ticker SOLQ. This collaboration underscores the growing integration of blockchain technology within traditional financial markets. In addition to 3iQ, Figment offers staking infrastructure solutions to over 700 clients, demonstrating its extensive experience and reliability in the field.

The Ontario Securities Commission (OSC), a provincial regulator, approved 3iQ’s SOL fund on April 14. This approval extends to other fund managers seeking to offer SOL ETFs, including Purpose, Evolve, and CI. The regulatory green light signifies a significant step forward in the acceptance of digital assets within the Canadian financial landscape.

3iQ estimates that its SOL fund will provide yields of between 6% and 8%, according to its website. This yield range is attractive to investors seeking stable returns in the volatile cryptocurrency market. The fund’s staking mechanism allows investors to earn additional income through the process of validating transactions on the Solana blockchain, further enhancing its appeal.

Canada has been at the forefront of crypto ETF adoption, with 3iQ leading the charge. In 2021, 3iQ debuted its spot Bitcoin (BTC) ETF, which quickly amassed over $1 billion in net assets. This success paved the way for other crypto ETFs in Canada and set a precedent for the United States, where spot Bitcoin ETFs were approved nearly three years later. The US ETFs saw remarkable success, generating over $38 billion in net inflows within their first year.

In October 2023, 3iQ launched an ETF tied to Ether (ETH), providing investors with direct access to the smart contract platform. Unlike the Ether ETFs approved in the United States the following year, 3iQ’s fund offers staking rewards. This feature allows investors to earn additional income by participating in the validation of transactions on the Ethereum blockchain. The potential approval of staking rewards by US regulators, following the authorization of options contracts tied to ETH, could further boost the appeal of crypto ETFs in the United States.