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Howdy!

Today’s a big day for regulated investment vehicle enjoyers, as we got news of a SOL ETP filing yesterday afternoon.

It’s also a big day for long daytime enjoyers, as yesterday was the longest day of 2024. I fall more into the latter camp personally. But regardless:

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3iQ takes the Solana fund plunge

The Canadian crypto-focused fund manager 3iQ announced yesterday afternoon that it had filed a prospectus to offer a solana exchange-traded product (ETP). 

The move is notable not so much for 3iQ’s size but for the historical context: The firm listed bitcoin and ether funds before either asset had a regulated futures market in the US. Many view a futures ETF as a key milestone for any potential crypto spot ETF.

The solana ETP, which would trade as QSOL on the Toronto Stock Exchange, would be a closed-end fund, meaning that a limited number of shares would be created through an initial public offering (IPO) which could then be bought and sold on the stock exchange. This is in contrast to BlackRock’s IBIT bitcoin ETF, for instance, which can create and buy back shares based on market fluctuations. 

The fund will charge a 1.5% management fee, according to a copy of the prospectus we obtained, which puts it below the 2.5% charged by the Grayscale Solana Trust — another solana-focused security in North America. 

What I found most interesting from the filing is that some of the fund’s SOL will be staked via Coinbase Custody, and 25% of the staking rewards will go to 3iQ as a “staking fee.” The other 75% goes to the fund — but that 25% is still a pretty big slice for the firm.

3iQ Digital Assets president Christopher Matta told me the hefty staking fee is justified by the value offered by a regulated solana vehicle having exposure to both price and staking rewards. Matta added that as more of these funds come to market, “fees, of course, will come down across the board.”

If you’ll remember, the SEC’s approval of US spot ether ETFs last month hinged on staking being stripped from the filings. 3iQ currently offers an ether staking ETF on the Toronto Stock Exchange. 

Down the road, solana ETF hopefuls should watch for a futures ETF to go live on the Chicago Mercantile Exchange (CME), a step both bitcoin and ether both went through before their eventual approvals. 

“​​I think a lot of the regulatory uncertainty in the US has probably been one of the reasons why it hasn’t happened yet,” Matta said of solana futures ETFs. Last year, the SEC indicated solana could be classified as a security in lawsuits against Binance and Coinbase. Any update to that stance would doubtless have a large impact on the potential for solana ETFs in the US.

For now at least, Canadian regulators will be giving solana a look-over.

Matta said the path from the prospectus to a decision from regulators will likely take “a few months.”

— Jack Kubinec

Zero In

Solana set a record for weekly unique active addresses on the network last week, according to Blockworks Research.

The darker purple represents existing addresses, while the lighter purple are new addresses. You can see a significant rise in new addresses over the past few months — perhaps driven by the growing interest in memecoin trading.

But lest I get flooded with angry emails, let me add one quick caveat: unique addresses are not the same thing as unique users. The chart shows roughly 4.7 million unique addresses transacted on Solana last week, but the number of unique users was certainly smaller, as some individuals will make use of multiple addresses.

— Jack Kubinec

The Pulse

ICYMI: Stories you may have missed from Solana land this week:

• The Solana Incubator Demo Day is set for June 26. Featured projects will include Armada, Espresso Cash, Juicer, Sanctum, Shaga, and Zeebit.
• Pyth Network deployed its pull oracle on Solana, bringing increased reliability, higher frequencies, more feeds, historical data, and enhanced security to Solana DeFi.
• The first footage of the MagicBlock Engine, designed for fully on-chain Solana games with zero lag and high performance, was showcased at a16z crypto demo day.
• Solana’s summer kickoff events are happening worldwide, with major meetups in Lisbon, Berlin, Zurich, Amsterdam, Chicago, San Francisco, and many more.
• Solana layer-2 network Sonic raised $12 million in a Series A funding round led by Bitkraft Ventures, with a valuation of $100 million.
• TipLink wallet has arrived on Truffle. Web2 users can now mint from Truffle Drop using just a Google account, eliminating the hassle of extensions and seed phrases.
• An MEV sandwich bot named “arsc” has made around $30 million from Solana users over the past two months through MEV attacks. The bot’s activities and profits are largely hidden, with significant funds in cold storage and active DeFi wallets.

— Jeff Albus

One Good DM

A message from Christopher Matta, president of 3iQ Digital Assets:

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As 2021 involves a detailed, Bitcoin (BTC) has had a tumultuous trip this 12 months, with wild value swings which have seen the pioneer cryptocurrency hit all-time highs solely to retrace to decrease costs — together with a 50% drop that shook the market. Now, Bitcoin is as soon as once more again and stronger than ever, even just lately going previous its earlier all-time excessive.

Bitcoin’s dizzying market value swings apart, it appears some politicians have acknowledged Bitcoin’s potential, with a wave of mayors throughout america expressing bullish sentiments.

From Florida to New York, there’s a seemingly rising pattern of politicians, significantly metropolis mayors, supporting Bitcoin adoption.

Here’s a have a look at a few of America’s mayors who’ve expressed bullish sentiments concerning the main cryptocurrency.

New York Metropolis Mayor-elect Eric Adams

Mayors throughout the U.S. have been pushing for the adoption of digital property, together with New York Metropolis’s newly elected mayor, Eric Adams, who has pledged that he’ll take his first three paychecks in Bitcoin. The transfer from Adams was in response to the mayor of Miami’s announcement two days earlier that exposed his plans to settle for his subsequent paycheck fully in Bitcoin.

Adams, a former police officer with a status for being robust on crime, mentioned in a tweet that “In New York we all the time go massive, so I’m going to take my first THREE paychecks in Bitcoin.”

Adam additional tweeted that “NYC goes to be the middle of the cryptocurrency business and different fast-growing, revolutionary industries.”

The newly elected mayor additionally spoke to Bloomberg, saying that he’ll “have a look at what’s stopping the expansion of Bitcoin and cryptocurrency in our metropolis.”

Mayor-elect Adams has been a Bitcoin bull for fairly a while, having beforehand pledged to make New York Metropolis the middle for Bitcoin. Adams has additionally steered that colleges add cryptocurrency and blockchain expertise to their curriculum.

Miami Mayor Francis Suarez

Since his election, Adams has been duking it out with Miami Mayor Francis Suarez over who’s the larger Bitcoin bull. Suarez, who was reelected for one more time period after serving as Miami’s mayor since 2017, additionally claimed in a tweet that he would take his subsequent paycheck “100% in Bitcoin.”

As part of Miami’s plan to grow to be the crypto capital of the U.S., Suarez mentioned that town plans to subject digital wallets to its residents that may be used to dole out Bitcoin yields from town’s crypto stash.

Whereas some experiences state that U.S. legislation prohibits sure states from holding risky property, Miami’s mayor stays adamant, claiming that his high precedence is to hopefully run town with out taxes. Suarez has beforehand talked about that he desires to pay metropolis staff in crypto.

Cool Valley, Missouri Mayor Jayson Stewart 

Within the small city of Cool Valley, Missouri, Mayor Jayson Stewart introduced that he meant to present every resident as much as $1,000 in Bitcoin as a response to the rising adoption of cryptocurrencies.

The environmentalist mayor believes that Bitcoin can elevate the city’s fortune by means of the institution of Bitcoin mining services and different associated actions. Stewart additionally believes that Bitcoin training holds the important thing to growing wealth and prosperity within the area, and he hopes to sooner or later see a Bitcoin-friendly financial institution within the metropolis.

In an interview with Cointelegraph Journal, Stewart mentioned that “Quite a lot of it’s about fixing the wrongs of the previous monetary system. Prior to now, we didn’t have entry to this superb expertise that we have now in the present day on the subject of our monetary system and storing our price.”

Just like Miami’s mayor, Stewart plans to dole out Bitcoin to the folks of Cool Valley, with a plan that’s funded by non-public donors who intention to extend the use and adoption of the digital asset. 

The Missouri mayor has been a Bitcoin bull since way back to 2015, when he used to work for a tech startup that served rich shoppers and earned a wage in Bitcoin.

Jackson, Tennessee Mayor Scott Conger

Within the wave of cities throughout the U.S. edging nearer to Bitcoin adoption, town of Jackson, Tennessee isn’t one to be left behind. With a perception that Bitcoin is the one resolution to repair the devaluation of the U.S. greenback and the inflation that’s chopping throughout the worldwide financial system in the intervening time, town’s mayor, Scott Conger, introduced {that a} blockchain job power will examine potential strategies of enabling property tax funds within the metropolis utilizing Bitcoin.

In mid-July, Conger tweeted: “Why will we settle for inflation? Why don’t we demand extra from our federal authorities? 6.3% in 2 years. 172.8% in my lifetime. Yearly our greenback is price much less. There isn’t a rebound. There’s only one repair for this.. #Bitcoin.”

Just like the emotions of different mayors, Conger has expressed curiosity in exploring choices that may see town’s staff obtain their paychecks in cryptocurrency. The mayor additionally plans to undertake Bitcoin mining operations and add BTC to town’s stability sheet. Other than Bitcoin, Conger has additionally hinted at Ether (Ether) and Litecoin (LTC) as potential mediums for funds throughout the metropolis’s monetary operations.

Tampa, Florida Mayor Jane Castor

Tampa Mayor Jane Castor has additionally joined the fray of mayors in cities across the U.S. who’re bullish on Bitcoin. A matter of days after Miami Mayor Suarez introduced his plans to obtain a Bitcoin paycheck, Castor adopted swimsuit.

Castor made the announcement on day two of the Florida Bitcoin and Blockchain Summit, which passed off on the Amalie Area in downtown Tampa.

Proud to host the Florida #Bitcoin & #Blockchain Summit right here within the @CityofTampa, the place we encourage innovation and embrace rising expertise. pic.twitter.com/3ig7L5u1bd

— Jane Castor (@JaneCastor) November 5, 2021

Rising bullish sentiments

Other than American mayors embracing Bitcoin and blockchain expertise, different leaders across the nation and throughout the globe are beginning to understand the advantages of Bitcoin and cryptocurrencies. As an example, U.S. Representatives Tom Emmer and Darren Soto despatched a letter to the Securities and Change Fee in a name for the approval of Bitcoin ETFs within the U.S., one thing that many onlookers imagine may arrange a bullish pattern for Bitcoin and legitimize cryptocurrencies.

Even conventional monetary establishments that had been bearish on Bitcoin are beginning to admit that cryptocurrencies and blockchain expertise are primed to result in revolutionary modifications to the finance business. The chief working officer of Financial institution of America, as an illustration, just lately claimed that blockchain and cryptocurrencies may enhance the operations of banks.

In Australia, Commonwealth Financial institution — one of many largest banks within the nation, with almost 16 million clients — has revealed plans to combine Bitcoin into its providers. Everywhere in the crypto house, a wave of bullish information continues to emerge, with Bitcoin showing primed for upward momentum.