The competition to launch the first Solana exchange-traded fund (ETF) in the United States is intensifying. Invesco and Galaxy Digital have officially filed with the U.S. Securities and Exchange Commission (SEC) to introduce the Invesco Galaxy Solana ETF, aiming to provide investors with direct exposure to Solana (SOL), the sixth-largest cryptocurrency by market capitalization .
What Sets the Invesco Galaxy Solana ETF Apart?
• The proposed ETF, set to trade under the ticker “QSOL” on the Cboe BZX Exchange, will directly hold Solana tokens, mirroring the structure of recent Bitcoin and Ethereum spot ETFs.
• Coinbase Custody will safeguard the underlying Solana assets, ensuring institutional-grade security for investors 1.
• Notably, the fund may stake a portion of its SOL holdings, allowing the trust to earn additional token rewards, which would be treated as income for the ETF.
Regulatory Path and Industry Context
• The filing, submitted as a Form S-1 registration, signals the intent to launch but requires a subsequent Form 19b-4 to initiate the SEC’s formal review process.
• Invesco and Galaxy’s move makes them the ninth issuer to seek approval for a Solana spot ETF, joining a crowded field that includes VanEck, Bitwise, Grayscale, and Fidelity .
• The SEC has yet to approve any altcoin ETFs, with only Bitcoin and Ethereum spot ETFs currently trading in the U.S. market .
Why the Rush for a Solana ETF?
• The surge in filings reflects growing institutional interest in Solana and the broader altcoin market, especially after the successful launches of Bitcoin and Ethereum ETFs earlier in 2024.
• Industry analysts estimate a 90% chance that the SEC will approve a Solana ETF by the end of 2025, with some predicting a decision as soon as July.
• The regulatory environment is evolving, with the SEC under increasing pressure to expand access to crypto-based investment products.
What’s Next?
• The SEC will review whether the Invesco Galaxy Solana ETF meets the necessary standards under the Securities Exchange Act .
• If approved, QSOL would be among the first Solana ETFs available to U.S. investors, potentially setting a precedent for other altcoin funds .
The race for a Solana ETF highlights the growing demand for diversified crypto investment vehicles and signals a new phase in the mainstream adoption of digital assets.
