Invesco and Galaxy Digital Take Steps Toward Launching Solana ETF
In a significant move towards bringing a Solana exchange-traded fund (ETF) to the US market, Invesco and Galaxy Digital have registered a trust named Invesco Galaxy Solana ETF with Delaware’s Division of Corporations on June 12, according to public records.
Several firms have been creating Delaware statutory trusts in recent months before seeking approval from the US Securities and Exchange Commission (SEC) to launch a crypto ETF. This legal structure not only provides a framework but also signals intent to regulators and investors.
If Invesco and Galaxy Digital proceed as planned, their next step would be to file an S-1 registration statement with the SEC. This filing would kickstart the regulatory review process required to list the product on a national securities exchange.
Building Momentum for Solana ETF
The trust registration by Invesco and Galaxy Digital comes at a time when momentum is growing around the potential approval of a Solana ETF product. Data from prediction market Polymarket indicates a 91% probability of approval for such a product in 2025, with reports suggesting that the SEC may give the green light to the first Solana ETFs as early as July.
Prospective issuers have been asked by the SEC to update their S-1 filings within a week, indicating active dialogue between the regulator and market participants. Discussions have also reportedly included the possibility of permitting limited staking functionality within approved ETFs, a feature that could enhance investors’ returns.
If approved, the Solana ETF would offer investors exposure to Solana’s price performance through a regulated vehicle, without the need for direct custody or purchase of the digital asset. However, the level of investor demand for the product remains uncertain.
Bloomberg ETF analyst Eric Balchunas pointed out that while the Solana ETF will likely attract some inflows, they may not reach the same scale of demand as seen with Bitcoin ETFs. He mentioned, “The further away you get from BTC, the less assets there will be.”