Asset management firm Invesco, in partnership with Galaxy Digital, has filed for a Solana-focused ETF, targeting the sixth-largest cryptocurrency by market capitalization.
Goals and Structure of the ETF
The Invesco Galaxy Solana ETF aims to track the spot price of Solana (SOL). The fund will directly hold Solana and trade under the ticker 'QSOL' on the Cboe BZX exchange. Coinbase Custody will serve as the custodian, holding the underlying Solana tokens and ensuring compliance with regulatory standards.
Rising Interest in Altcoin-based ETFs
Other firms including VanEck and Bitwise are also looking to offer their own Solana ETFs. With growing interest in altcoins, asset managers appear eager to gauge investor appetite beyond Bitcoin and Ethereum. The ETF proposal also includes provisions for staking Solana assets, allowing the fund to earn staking rewards in the form of additional tokens.
Regulatory Outlook and Political Climate
Bloomberg ETF analyst James Seyffart has noted that the SEC may move quickly to approve spot Solana ETFs in the coming months. This aligns with speculation that the SEC may greenlight multiple crypto-based ETFs simultaneously to avoid giving one firm a competitive advantage. The optimism in the crypto market is also bolstered by political support for deregulation from the Trump administration, subsequently driving Bitcoin prices higher.
If approved, the Invesco Galaxy Solana ETF could herald a new era for cryptocurrency investment, providing broader access to blockchain-based assets.
