Solana Surges 5.45% as Invesco, Galaxy Digital Register Solana ETF Trust

Solana's latest price was $152.46, up 5.453% in the last 24 hours. This surge in price reflects the growing institutional interest in the Solana ecosystem, with Invesco and Galaxy Digital officially registering the Solana ETF Trust. This move follows the successful launches of Bitcoin and Ethereum ETFs by the same firms, indicating a growing confidence in Layer 1 blockchain assets among institutional investors. The registration of the Invesco Galaxy Solana ETF Trust is a strategic effort to deepen institutional engagement with Solana’s blockchain network. Building on their prior success with Bitcoin and Ethereum ETFs, this initiative aims to provide investors with regulated, accessible exposure to Solana’s native token. The move is expected to enhance market liquidity and foster greater price discovery, which are critical for the maturation of Solana as a mainstream digital asset. Market analysts highlight that institutional adoption of Solana could parallel the inflows witnessed in Bitcoin and Ethereum ETFs, potentially driving significant capital into the Layer 1 ecosystem. The registration comes at a time when institutional appetite for digital assets is intensifying, with Galaxy Digital CEO Mike Novogratz emphasizing the growth potential within altcoin markets. If approved, the Solana ETF could serve as a catalyst for increased trading volumes and heightened investor confidence, particularly among hedge funds and asset managers seeking regulated exposure to emerging blockchain platforms. Polymarket’s prediction model currently estimates a 91% chance of ETF approval, reflecting widespread market enthusiasm. Historical trends from Bitcoin and Ethereum ETF launches suggest that Solana could experience a similar surge in adoption, which may also benefit other Layer 1 blockchains through increased interoperability and developer activity. This institutional momentum is poised to drive innovation and liquidity across decentralized finance (DeFi) and non-fungible token (NFT) sectors linked to Solana. The introduction of a Solana ETF is likely to have significant ripple effects beyond the immediate token market. Enhanced liquidity and institutional participation can stimulate ecosystem growth, attracting developers and projects to Solana’s scalable platform. This could accelerate advancements in smart contract capabilities, DeFi protocols, and NFT marketplaces operating on Solana’s network. Furthermore, the ETF’s presence may encourage competitive responses from other Layer 1 blockchain projects, fostering innovation and potentially leading to a more diversified crypto investment landscape. Investors and market participants should monitor regulatory developments closely, as approval of the Solana ETF could set a precedent for future Layer 1 asset-based funds. Regulatory bodies have shown increasing openness towards crypto ETFs, as evidenced by recent approvals of Bitcoin and Ethereum funds. The Solana ETF registration aligns with this trend, suggesting a gradual integration of digital assets into traditional financial markets. However, regulatory scrutiny remains rigorous, with ongoing assessments of market manipulation risks and investor protections. Successful approval and launch of the Solana ETF would mark a significant milestone, potentially paving the way for a broader array of crypto ETFs covering diverse blockchain protocols. This evolution could enhance market transparency and accessibility, benefiting both retail and institutional investors. The registration of the Invesco Galaxy Solana ETF Trust underscores a growing institutional commitment to Layer 1 blockchain assets, with Solana positioned to benefit from increased liquidity and adoption. As regulatory frameworks evolve, this ETF could play a pivotal role in bridging traditional finance and decentralized technologies, fostering innovation and expanding the crypto investment landscape. Investors should stay informed on approval developments, as the Solana ETF may herald a new phase of institutional engagement and market maturity. The Securities and Exchange Commission reportedly asked prospective Solana ETF issuers to submit amended S-1 forms, raising questions about whether a Solana ETF could be approved this year. The SEC recently released guidance on staking, which appears to support native staking. This, along with a request for comment on S1 filings appears to indicate approval is imminent. Approval will be a great way for a set of investors to access Solana in a new way–supporting the network–and allowing them to participate in the likely future growth of the network. The Solana network handles an average of 93 million transactions per day, totaling around 2.8 billion in April 2025. Many of those transactions are processed by companies like the crypto exchange Gemini or the infrastructure and investment firm Sol Strategies, which earn revenue from staking assets and validating the chain. Right now Solana users include a healthy mix of DeFi activity, NFTs, and, increasingly, real world assets being brought on chain. Moodys, Societe Generale, R3, Securitize, Franklin Templeton and BlackRock are all building and releasing products on Solana. All of this is why the timing is right for a Solana ETF. What makes the case for a Solana ETF a little more complicated is that, unlike Ethereum, where the staking reward hovers around 2%, the Solana staking reward of 8% cannot be ignored. With Solana’s high staking return it is imperative that the SEC not only approve a Solana spot ETF, but, in fairness to investors, an ETF that stakes. Apart from the return dynamics, another important consideration is that Solana requires Solana in a proof-of-stake system to run the network. If that were to happen to Solana, and that SOL could not be staked, it could cause network issues as more and more SOL tokens became unavailable to the network. Within a short window, some of the largest names in asset management delivered updated filings for spot Solana ETFs. These aren’t speculative newcomers. These are firms with decades of institutional reach now attempting to wrap Solana into something Wall Street can trade with a click. More importantly, this round of filings includes a serious feature: staking. That opens up the possibility of Solana ETFs not only tracking price but also generating native yield. It’s a striking change in tone. Until recently, the assumption was that altcoin-based ETFs were still years away. Now it feels like the floodgates could open, and Solana is first in line. The impact of that is not limited to just SOL. Whenever fresh institutional money enters a major chain, the effects bleed into everything that operates in its orbit: meme tokens, infrastructure projects, and DeFi applications.