Invesco Galaxy Files For Solana ETF With SEC

Invesco Capital Management LLC, in collaboration with Galaxy Digital, has submitted an S-1 filing to the U.S. Securities and Exchange Commission (SEC) to introduce the Invesco Galaxy Solana ETF. This proposed exchange-traded fund, which will be traded under the ticker QSOL on the Cboe BZX Exchange, is designed to track the spot price performance of Solana using the Lukka Prime Solana Reference Rate as its benchmark. The ETF aims to provide investors with exposure to the price of Solana without the need for direct ownership of the cryptocurrency.

The filing represents a notable advancement in the trend of financial institutions seeking SEC approval for Solana-focused ETFs. Invesco Galaxy joins a list of other firms, including Grayscale, VanEck, and Fidelity, which have also filed for similar ETFs targeting Solana. The proposed ETF will utilize the Lukka Prime Solana Reference Rate, a pricing mechanism that tracks the spot price of Solana in the market, to achieve its investment objective.

The approval of such ETFs is becoming increasingly likely, according to market analysts. The SEC’s growing openness to approving similar products, including the recent approval of Ethereum spot ETFs that include staking rewards, has fueled optimism in the market. The SEC requested earlier this month that spot Solana ETF issuers update their S-1 filings, suggesting that approvals could be on the way sooner than later.

The Solana ETF landscape is becoming increasingly crowded with the rising number of firms intending to deliver similar products. Other firms, including Grayscale, VanEck, Bitwise, and 21Shares, have registered their Solana spot ETFs. These firms have been closely monitoring the regulatory climate around crypto ETFs, with the expectation that the SEC will deliver a favorable verdict. In mid-June, a number of firms, including VanEck, 21Shares, and Bitwise, amended their S-1 documents to include staking language, which was mandated by the SEC after approving Ethereum spot ETFs that distribute staking rewards. Such actions indicate that these companies are trying to align their proposals with SEC regulatory expectations.

The Invesco Galaxy Solana ETF filing is a major step in the evolution of Solana-focused ETFs, offering investors a new way to gain exposure to the cryptocurrency market. The ETF aims to provide a convenient and accessible investment vehicle for those interested in the price performance of Solana, without the complexities of direct cryptocurrency ownership. The growing interest in Solana ETFs reflects the increasing demand for cryptocurrency investment products and the potential for regulatory approval in the near future.