Solana ETF – Could Approval in Canada Pave the Way for the Product’s Launch in the US?

Journalist

• SOL will soon receive its first ETF from 3iQ Digital Asset Management, a Canadian company.
• The update did not do much to shake up SOL’s stock market, which has been in reverse gear for a long time.

Solana [SOL] According to a recent update from 3iQ, a digital asset management company, Canada is about to receive its first exchange-traded funds. The digital asset manager shared part of its announcement Read more

3iQ Corp. announces that it has filed a preliminary prospectus for Solana Fund QSOL with the Canadian Securities Exchange in connection with a public offering.

Investors will also receive rewards from the Solana Fund when they stake their SOL.

Coinbase Institutional will co-manage 3iQ’s assets with Tetra. This is interesting because Coinbase Institutional has custody of over 80% of U.S. spot bitcoin ETFs.

If approved, could this attract other asset management firms and jurisdictions, including the US? Bloomberg ETF analyst Eric Balchunas You can also read our recommended article It was possible, especially if Trump were to win the US election.

SOL’s position on the charts

The method that has been argued to be the final listing for spot ETFs in the US is through futures. BTC and Ethereum [ETH] Before the SEC, futures products were considered spot products.

The positive price update did not affect the bullish SOL chart as BTC dominated the markets.

SOL was trading at $132 at the time of this press release. It was below both the 50-day and 20-day EMAs. SOL’s prices were below both the short-term and long-term trends, confirming a bearish market.

The $120 mark has been a crucial support for 2024. It could be retested if buying pressure subsides, as indicated by the below-average RSI (Relative Strength Index).

A reported shift from memecoin dominance to DeFi has been another complication in SOL’s recovery. According to Kaito AI, Web 3’s market intelligence platform

DeFi has been flipping memecoins to gain attention, a very rare sight in this cycle.

The DeFi narrative gained momentum in resistance to memecoins, which are the foundation of the Solana ecosystem.

CryptoQuant founder Ki Young Ju made the same statement last week. Note: Memecoin dominance “has been declining in altcoin markets.”

A decline in memecoin user activity could negatively impact SOL and its ecosystem in general. Altcoins could get some relief if BTC recovers from recent losses.