Asset management firm Invesco has partnered with Galaxy Digital to file for a Solana exchange-traded fund (ETF), marking the ninth such application currently under review by the U.S. Securities and Exchange Commission (SEC).
The Invesco Galaxy Solana ETF aims to track the spot price of Solana (SOL), which is the sixth-largest cryptocurrency by market capitalization.
This move builds on the momentum of Bitcoin ETFs launched in early 2024 and the subsequent, more moderate success of Ether ETFs later that year.
Rising Interest in Altcoin-Based ETFs
Other firms in the race to offer Solana ETFs include VanEck, Bitwise, Grayscale, 21Shares, Franklin Templeton, Fidelity, and Canary Capital.
With growing interest in altcoins, asset managers appear keen to test investor appetite beyond Bitcoin and Ethereum.
Invesco and Galaxy’s ETF would directly hold Solana and trade under the ticker “QSOL” on the Cboe BZX exchange.
Coinbase Custody would serve as the fund’s custodian, holding the underlying Solana tokens and ensuring compliance with regulatory standards.
Potential for Staking Solana Assets
The ETF proposal also leaves room for staking activity.
According to the filing, Invesco and Galaxy may occasionally stake a portion of the fund’s assets through one or more approved staking providers.
In return, the ETF would earn staking rewards in the form of additional Solana tokens, which may be treated as income to the trust.
Other ETF issuers, including VanEck and Bitwise, have recently amended their filings to include similar language around staking provisions.
Regulatory Outlook Could Signal Green Light Soon
Bloomberg ETF analyst James Seyffart noted in a recent memo that the SEC could move quickly to approve spot Solana ETFs, possibly as early as July.
This potential timeline aligns with speculation that the SEC may greenlight multiple crypto-based ETFs simultaneously to ensure no firm gains a first-mover advantage.
Senior Bloomberg analyst Eric Balchunas added, “Get ready for a potential altcoin ETF summer with Solana likely leading the way.”
Seyffart and Balchunas have assigned a 90% probability that Solana ETF approvals will occur, with the final SEC deadline for decisions landing on October 10.
Political Climate Adds Momentum to Crypto ETFs
The broader optimism in the crypto market has been partially fueled by the Trump administration’s support for deregulating the crypto sector.
This political backdrop has driven Bitcoin prices to new highs and encouraged publicly listed companies to collectively invest billions into crypto.
If approved, the Invesco Galaxy Solana ETF will join a new generation of investment vehicles aiming to provide broader exposure to blockchain-based assets.