Invesco and Galaxy have taken a step towards launching an ETF based on Solana by filing an application with the SEC. This initiative signifies growing institutional interest in altcoin-based investment products.
Details of the Filing
The filing, submitted on June 25, is the ninth application for a Solana-based ETF, indicating an increasing interest from institutional investors. The ETF, named the Invesco Galaxy Solana Trust, aims to provide direct exposure to Solana (SOL), the sixth-largest cryptocurrency by market capitalization.
Structure and Characteristics of the ETF
According to the S-1 registration statement, the ETF will trade under the ticker QSOL on the Cboe BZX Exchange. Coinbase Custody will safeguard the underlying digital assets, and the fund is designed as a commodity trust, similar to recently approved Bitcoin and Ethereum ETFs. The ETF may also stake a portion of its SOL holdings for token-based rewards.
Outlook for ETF Approval
While the SEC has yet to approve any altcoin ETFs, the possibility has not been dismissed. Several other issuers, including VanEck, Bitwise, Grayscale, and Fidelity, have filed their own Solana ETF proposals and are awaiting regulatory feedback. Final decisions on these applications are expected by October, which could determine Solana's standing in the ETF market.
The application from Invesco and Galaxy to create an ETF based on Solana highlights the growing interest in altcoins and could lead to significant changes in the cryptocurrency market, especially with the potential for approval from the SEC.
