Invesco and Galaxy Digital Set to Launch Solana ETF in the US
Invesco and Galaxy Digital are making significant strides toward introducing a Solana exchange-traded fund (ETF) to the U.S. market. Official records reveal that the two firms have registered a trust called the Invesco Galaxy Solana ETF with Delaware’s Division of Corporations as of June 12. This step signifies an important move in a landscape where various companies have established Delaware statutory trusts as part of the broader effort to gain approval from the U.S. Securities and Exchange Commission (SEC) for crypto ETFs. This legal framework not only signals intent to regulators but also boosts investor confidence in a market still finding its footing.
The next pivotal step for Invesco and Galaxy is to submit an S-1 registration statement to the SEC, which would formally commence the regulatory review process essential for listing the ETF on a national securities exchange. This filing serves as a crucial bridge between preliminary preparations and formal approval, allowing the firms to lay out the fund’s structure and investment strategy. Given the growing interest in cryptocurrency investments, including Solana, this move could reshape the investment landscape, offering broader access to digital asset exposure.
Currently, momentum is building around the potential approval of Solana ETFs. A forecast from Polymarket indicates a striking 91% probability that such a fund could receive the green light by 2025. This optimistic outlook is supported by recent reports suggesting the SEC may be open to approving Solana ETFs as soon as July. Importantly, the SEC has requested several issuers to update their S-1 filings, indicating constructive dialogue between the regulator and industry participants regarding the approval process for these innovative financial products.
Furthermore, discussions have emerged around the possibility of incorporating limited staking functionalities within approved ETFs. This feature could attract more investors by enhancing potential returns, although it would also introduce additional complexities for fund management. If successful, the Solana ETF would offer investors an opportunity to gain exposure to Solana’s price movements through a regulated vehicle, eliminating the need for direct custody or purchase of the digital asset itself, thereby attracting a broader range of institutional and retail investors.
However, the level of investor demand for a Solana ETF remains uncertain. Bloomberg ETF analyst Eric Balchunas has pointed out that while there may be some inflow into a Solana fund, it is unlikely to match the overwhelming demand witnessed with Bitcoin ETFs. Balchunas notes a clear trend where "the further away you get from BTC, the less assets there will be." This illustrates the potency of Bitcoin’s brand in the cryptocurrency market, which might overshadow Solana and other altcoins in terms of investor interest.
In summary, as Invesco and Galaxy Digital navigate the regulatory landscape to launch the Invesco Galaxy Solana ETF, several factors will influence its potential success. While there is a true sense of optimism surrounding regulatory approval, the irreversible link between investor preferences and Bitcoin’s dominance in the crypto space emphasizes the challenges ahead. Should the Solana ETF gain traction, it could significantly impact how investors approach cryptocurrencies, democratizing access while fostering a new wave of digital asset investment.
