Solana ETF Race Heats Up as Galaxy and Invesco Join the Battle

Invesco Capital Management and Galaxy Digital have jointly filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch a Solana spot exchange-traded fund (ETF). If approved, the ETF would be listed under the ticker QSOL on the Cboe BZX Exchange and track the spot price of Solana (SOL) using the Lukka Prime Solana Reference Rate as its benchmark.

The proposed ETF is designed to give investors regulated, direct exposure to Solana without requiring them to purchase or custody the asset themselves. 

This is not the first crypto ETF filing from Galaxy or Invesco, but it’s their first focused on Solana. The ETF would hold actual SOL tokens, with Coinbase Custody Trust Company managing the storage of assets. Like recently approved Ethereum ETFs, the Invesco Galaxy Solana ETF also includes staking provisions, potentially allowing the fund to generate additional Solana rewards on behalf of investors.

The filing states that the fund may stake a portion of its holdings, and any resulting rewards would be treated as income to the trust. 

Regulatory Momentum Behind Altcoin ETFs

Galaxy and Invesco’s move is the ninth filing for a Solana ETF, joining major players like Grayscale, VanEck, Bitwise, and 21Shares. The SEC has reportedly requested updated S-1 filings from these applicants, a move often interpreted as a sign that approval could be imminent.

Industry analysts believe the timing is right. Following the strong debut of Bitcoin ETFs in early 2024, asset managers are looking to capitalize on investor appetite for more diversified crypto products. Ethereum ETFs followed, with modest success. Now the spotlight has shifted to altcoins, and Solana is leading the charge.

Bloomberg ETF analyst James Seyffart noted that the SEC might fast-track some of these filings, potentially approving Solana spot and staking ETFs by July. His colleague, Eric Balchunas, echoed the optimism, suggesting that “Altcoin ETF summer” could be around the corner.

Why Solana?

Over the past two years, Solana has grown from a high-risk Ethereum alternative into a top-tier blockchain platform. It now powers a range of applications from decentralized finance (DeFi) to NFT marketplaces and onchain gaming ecosystems.

Solana’s fast transaction speeds, low fees, and growing developer ecosystem make it a compelling asset for institutional exposure. If the ETF is approved, it could signal broader acceptance of Solana as an investable asset by traditional finance.

With multiple firms now racing to launch the first Solana ETF, competition is intensifying. While Invesco and Galaxy have significant institutional weight, firms like Bitwise, VanEck, and 21Shares are also adapting their filings to align with SEC demands, especially around staking rewards and custody clarity.

All these proposals aim to give U.S. investors a regulated way to gain exposure to Solana—either through direct holdings, staking benefits, or real-time price tracking via the Lukka Prime benchmark.

What remains is for applicants to file Form 19b-4, which proposes a rule change necessary for Cboe BZX to list the ETF. Once submitted, this triggers the formal review and comment period from the SEC.

The spotlight now shifts to the SEC. As more firms tweak their filings to meet updated regulatory standards, the chances of a Solana ETF being approved this year continue to rise. Analysts suggest a decision could come as early as July, especially if multiple applications are reviewed together, similar to what happened with Ethereum ETFs.

This follows recent reports that DeFi Development Corp., a Nasdaq-listed blockchain company, secured a $5 billion equity line of credit with RK Capital Management LLC. The aim is to expand its Solana (SOL) treasury and strengthen its role in the network’s validator ecosystem.