ARK Invest Makes Solana Its First Spot Exposure to the Token Through a Canadian ETF

ARK Invest, led by Cathie Wood, has become the first U.S.-listed asset manager to gain exposure to Solana through an ETF.

Cathie Wood’s ARK Invest has become the first U.S.-listed asset manager to gain exposure to Solana through an ETF.

Two of its funds—the ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF)—purchased 237,500 shares each of the 3iQ Solana ETF (SOLQ), which is listed in Canada.

The investment follows the recent approval by Canadian regulators of several spot Solana ETFs, including 3iQ’s, which began trading on the Toronto Stock Exchange on April 16.

The 3iQ Solana ETF enables investors to gain direct exposure to the price of ether and accrue staking rewards. It is currently the only regulated investment vehicle of its kind for Solana in North America.

While a spot Solana ETF has not yet been approved in the U.S., ARK’s move provides a way for U.S. investors to access Solana through a listed fund.

The ARK funds that made the investment—ARKW and ARKF—are actively managed ETFs concentrating on disruptive innovation and financial technology.

They already factor in companies like Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD) and Block (NYSE:SQ) in their portfolios. By adding SOLQ, they further diversify their crypto holdings.

ARK also manages the 21Shares Bitcoin ETF (ARKB), a U.S.-listed spot bitcoin ETF which is valued at nearly $4 billion.

This step highlights the growing interest of institutional investors in digital assets. Several large traditional firms are planning to offer crypto trading services, and additional crypto ETFs, including those for XRP, Litecoin and Dogecoin, are pending approval from the U.S. regulator.

The launch of Solana futures on the Chicago Mercantile Exchange in March also creates anticipation for the potential approval of a U.S.-listed Solana ETF in the future.

Despite the regulatory challenges in the U.S., asset managers are finding methods to invest in new assets through Canadian listings.

The U.S. regulatory landscape is gradually evolving as agencies like the Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Deposit Insurance Corporation work to define their stances on digital assets.

As ARK integrates the 3iQ Solana ETF into its portfolio, it provides a legal avenue for major asset management firms to invest in Solana, showcasing its role as a significant cryptocurrency investment vehicle within traditional finance.