Invesco Galaxy Files Solana ETF With SEC Amid Growing Institutional Interest

Invesco Capital Management and Galaxy Digital have filed for a Solana ETF with the U.S. Securities and Exchange Commission (SEC). The fund, named the Invesco Galaxy Solana Exchange Traded Fund, aims to list under the ticker QSOL on the Cboe BZX Exchange upon approval. This ETF would be one of the first to track Solana's spot price, in line with the Lukka Prime Solana Reference Rate. Invesco will act as the sponsor, Galaxy Digital will handle the acquisition of SOL tokens, Coinbase Custody will manage token storage, and Bank of New York Mellon will serve as the fund manager.

This filing signifies growing institutional confidence in Solana, a blockchain network known for its speed and low transaction fees. Most ETF filings to date have focused on Bitcoin or Ethereum, making this development notable as it indicates that major players in digital finance are seriously considering Solana. However, the SEC's approval is not guaranteed, as the regulator has been cautious about crypto ETFs, particularly for assets that could be classified as securities. The status of SOL remains unclear, which could impact the outcome.

The news of the ETF filing generated significant hype, but the market did not spike as expected. Instead, SOL fell to approximately $147.50 as traders took profits and prepared for potential sell-offs. Analysts now view $140 as critical support and $200 as psychological resistance. Technical indicators such as MACD and RSI suggest neutral to bearish signals, indicating caution among traders. Funding rates are zero, showing no strong bullish or bearish sentiment currently. The market is in a wait-and-see mode.

There is widespread optimism on Twitter regarding QSOL's chances of approval, with many believing it has a good chance of being approved in 2025. Recent hints from the SEC suggest a more positive stance toward crypto ETFs. A large transaction of 3 million SOL, worth over $430 million, was recently transferred between unidentified wallets, which some interpret as whale accumulation in anticipation of a potential ETF launch. According to the analyst's forecast, the polymarket prediction suggests a 90% chance of approval by this year.

VanEck's proposed Solana ETF, trading under VSOL, has recently appeared on the Depository Trust & Clearing Corporation (DTCC) website. This development is significant in the ongoing competition among ETF providers and could indicate that regulatory approval is imminent. The filing follows VanEck's earlier S-1 submission to the SEC on June 13, along with other major promoters such as 21Shares, Franklin Templeton, Grayscale, Fidelity, Bitwise, and Canary Capital. A notable feature in all these filings is the inclusion of staking language, which would allow the crypto products to earn yield from securing the Solana network. This adds a new level of utility and value for traditional investors seeking exposure to this altcoin.

Regardless of whether QSOL is approved, the fact that it has been submitted is a significant milestone for Solana and the broader crypto market. It demonstrates that the community is ready to support more than just Bitcoin with large financial institutions. Once approved, this financial product is likely to attract more investors, increase liquidity, and further integrate SOL into mainstream markets. The crypto community is now awaiting the SEC's decision, which could lead to institutional recognition for this altcoin.