Seven Major Issuers File Updated Solana ETFs With SEC Staking Feature

Seven major financial issuers, including Fidelity, VanEck, Bitwise, Canary Capital, Grayscale, Franklin Templeton, and 21Shares, have filed updated Spot Solana ETF S-1s with the U.S. Securities and Exchange Commission (SEC). This move includes the addition of staking, a feature that could significantly alter the landscape of crypto investment by leveraging Solana’s proof-of-stake mechanism. This development follows the SEC’s recent request for revised filings, suggesting a potential approval window within 3-5 weeks. This shift indicates a growing acceptance of crypto-based financial products by the regulator, who had previously delayed such approvals. Staking, which can yield 6-8% annually based on Solana’s network inflation data, adds a utility-driven dimension to these ETFs. This is supported by Solana’s robust network of over 1,900 validators and its impressive 99.9% uptime reliability.

Invesco and Galaxy Digital have also taken a significant step towards introducing a Solana exchange-traded fund (ETF) to the US market. Public records indicate that the firms registered a trust named Invesco Galaxy Solana ETF with Delaware’s Division of Corporations. This move aligns with a trend where several firms have created Delaware statutory trusts before seeking approval from the SEC to launch a crypto ETF. This structure provides a legal framework and signals intent to regulators and investors alike. If Invesco and Galaxy proceed as expected, the next milestone will be filing an S-1 registration statement with the SEC, which would formally initiate the regulatory review process required to list the product on a national securities exchange.

The registration of the Invesco Galaxy Solana ETF comes at a time when there is growing momentum around the potential approval of a Solana ETF product. Data from prediction market Polymarket shows a 91% probability that such a product will receive approval in 2025. This optimism follows reports suggesting the SEC may greenlight the first Solana ETFs as early as July. The SEC has asked prospective issuers to update their S-1 filings within one week, indicating active dialogue between the regulator and market participants. Discussions have also reportedly included whether to permit limited staking functionality within approved ETFs, a feature that could enhance investors’ returns. If the ETF secures approval, the product would allow investors to gain exposure to Solana’s price performance through a regulated vehicle, without direct custody or purchase of the digital asset. However, the level of investor demand remains uncertain. According to an analyst, while the product will likely attract some inflows, they are unlikely to match the scale of demand seen with Bitcoin ETFs.

Several issuers have filed amended S-1 forms for Solana ETFs, aiming to offer investors exposure to Solana by directly tracking the altcoin. The staking component potentially allows for higher returns. Bitwise, Canary, and Grayscale have amended their filings to allow staking rewards and passive income through trusted custodians. Fidelity Investments has also filed for a spot Solana ETF, signaling growing institutional interest in Solana and potential regulatory shifts. The race to launch a spot Solana ETF has intensified, with several leading investment firms submitting updated S-1 filings. The potential approval of a Solana ETF could create record staking rewards but also risks regulatory scrutiny. Solana's ETF bet promises juicy staking yields, but the outcome remains uncertain.