Invesco Galaxy Digital Registers Solana ETF Trust in US

Invesco and Galaxy Digital have registered a trust named Invesco Galaxy Solana ETF with Delaware's Division of Corporations, marking a significant step towards launching a Solana exchange-traded fund (ETF) in the United States. This move is part of their early-stage preparations to introduce a spot Solana ETF, which would provide investors with regulated exposure to the Solana token without the need for crypto wallets. The trust registration is a precondition for a future Form S-1 filing with the U.S. Securities and Exchange Commission, which is required to seek authorization to offer shares of the proposed ETF to the public. Additionally, the asset managers will likely pursue a 19b-4 submission through a national securities exchange.

The registration approach reflects industry trends as firms aim to broaden ETF offerings beyond Bitcoin and Ethereum. It also signals increasing institutional interest in Solana despite regulatory limitations. However, spot ETFs for assets other than Bitcoin and Ethereum remain unapproved in the U.S. at present. Solana, currently the fifth-largest digital asset by market value, remains a high-demand token among institutional and retail investors. A spot ETF will provide investors with regulated exposure to SOL without crypto wallets. This vehicle would simplify access for firms restricted from holding digital assets directly.

Invesco and Galaxy Digital aim to serve demand for Solana exposure while avoiding direct token custody. The proposed ETF intends to track Solana’s price performance using an index or physical token backing. Such structures align with existing spot ETF models used for Bitcoin and Ethereum. While this filing does not guarantee approval, it adds momentum to the growing list of digital asset ETF applications. Other asset managers like VanEck, Bitwise, and 21Shares have also filed for similar crypto ETFs. These actions indicate competition to capture market share as institutional interest in altcoins expands.

The timing of the Solana trust comes amid broader ETF-related activity in the cryptocurrency sector. Recent filings suggest increased confidence among asset managers despite current regulatory uncertainty surrounding non-Bitcoin ETFs. Additionally, Solana’s market activity has positioned it as a strong candidate for future ETF inclusion. Despite an ongoing decline in SOL’s market value, investor demand for indirect access remains steady. The ETF product could offer a more secure and regulated alternative to direct token investment. Moreover, financial firms appear optimistic about Solana’s role in long-term blockchain adoption.

The trust registration signals the start of a lengthy review process that may take months or years. However, the filing alone increases Solana’s visibility among regulators, financial institutions, and prospective investors. The next significant step will be the formal S-1 registration, which will determine whether the ETF gains SEC consideration. The registration of Invesco's Solana ETF could drive institutional interest in Solana, boosting market liquidity and regulatory scrutiny. The recent registration involves Invesco and Galaxy Digital, marking a critical step forward for Solana's future in the United States. Invesco, Global Asset Manager, stated, “The registration marks a significant step toward potentially listing a Solana ETF in the United States.”

Market reactions show Solana experiencing a 3.35% decline in 24-hour trading volume, reflecting initial uncertainties. These movements could signal higher interest upon SEC registration approval. The financial landscape sees potential shifts from crypto ETFs, as previous trends with Bitcoin and Ethereum ETFs show. An approved Solana ETF could significantly raise trading and liquidity volumes. Expert opinions and historical precedent underscore this registration's importance. Potential market movements could mirror those of Bitcoin and Ethereum upon ETF-related regulatory advancements. Regulatory approval remains the pivotal factor for Solana's widespread acceptance.