3iQ Digital Asset Management has lately come below scrutiny for its advertising and marketing of The Solana Fund (QSOL) as North America’s first Solana exchange-traded product (ETP). The Solana fund, which has filed a preliminary prospectus for an preliminary public providing of Class A and Class F items, goals to checklist on the Toronto Stock Exchange (TSX) below the ticker “QSOL”. However, critics argue that 3iQ’s promotional ways are deceptive and the Solana fund is definitely not an ETF or ETP.
3iQ’s Solana Fund Is Actually Not An ETF
3iQ, a number one digital asset funding supervisor, has offered the Solana fund as a pioneering funding car offering publicity to Solana (SOL). According to a press release, the fund goals to supply unitholders publicity to the Solana worth actions. Moreover, it desires to supply alternatives for long-term capital appreciation, and staking yields generated by the community.
Hence, to help its staking actions, 3iQ will make the most of Coinbase Custody’s institutional staking infrastructure. The fund’s official statements spotlight its ambition to be the primary Solana ETP listed in North America. However, Bloomberg senior ETF analyst Eric Balchunas has raised issues about this declare.
Balchunas factors out that except a fund has a “daily creation/redemption process,” it can’t be thought of a real ETF or ETP. He argues that 3iQ’s method is an try to “borrow on ETFs’ mountain of popularity and goodwill” with out adhering to the strict structural standards that outline these funding merchandise.
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Is It A CEF To ETF Game?
Balchunas’ skepticism is echoed by fellow Bloomberg analyst James Seyffart. He acknowledged that 3iQ and different Canadian issuers, like Ninepoint, have traditionally launched funds as closed-end funds (CEFs) with intentions to transform them to ETFs later. However, he additionally highlighted that the present advertising and marketing across the Solana fund doesn’t make this clear.
Moreover, Seyffart emphasizes that the technique seems “a little misleading.” This means that 3iQ’s communications may higher make clear the Solana fund’s precise standing and future intentions. Meanwhile, Balchunas acknowledged the pressures of promoting however insists that the tactic employed by 3iQ is “too slick.” In addition, he suggested that corporations ought to wait till a product genuinely qualifies as an ETP earlier than labeling it as such.
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