Cboe BZX Exchange has proposed an important initiative by filing to list the Invesco Galaxy Solana ETF with the SEC. This step marks a significant evolution in investment products for digital assets.
ETF Description and Features
The ETF, co-developed by Invesco and Galaxy Digital, will provide investors with regulated access to Solana (SOL), one of the fastest-growing Layer 1 blockchains. A key distinction of this fund is its built-in staking component. If approved, it would be the first U.S.-listed Solana ETF that directly holds the digital asset and stakes a portion of its holdings to generate revenue.
Market Integrity Defense for Solana
In its filing, Cboe BZX makes a strong case for allowing the Invesco Galaxy Solana ETF to be listed by arguing for Solana's sound market structure, which makes the asset less susceptible to price manipulation. Cboe notes that Solana trades globally and 24/7, creating a fragmented market that protects against manipulative pricing. Today's 24-hour trading volume of Solana is $2.78 billion.
Trends in Staking-Based ETFs
The filing for the Solana ETF comes on the heels of another significant application: Cboe BZX has also filed to list the Canary Capital Staked Injective ETF. This ETF will hold INJ tokens and stake them to generate excess yield. This highlights a growing interest in staking-based investment products, demonstrating that the asset class is expanding beyond Bitcoin and Ethereum.
The proposals for the Solana and Injective ETFs reflect the growing confidence of fund issuers and exchanges in the SEC's willingness to approve digital asset ETFs. These steps indicate a broader adaptation of the financial system to include blockchain-based assets alongside traditional investments.
