In a strategic move toward expanding crypto investment products, Invesco and Galaxy Digital have formally registered a trust in Delaware for what could become a spot Solana exchange-traded fund (ETF). The newly formed entity, named the “Invesco Galaxy Solana Trust,” is an early legal step in a potentially lengthy regulatory process.
While this registration doesn’t equate to ETF approval or guarantee a market listing, it does enable the asset managers to move forward with essential regulatory steps, including the anticipated filing of an S-1 form with the Securities and Exchange Commission (SEC) and a 19b-4 proposal via a national exchange.
This structure mirrors the approach taken by other investment firms such as VanEck, Bitwise, and 21Shares, who have all expressed interest in launching crypto ETFs beyond Bitcoin and Ethereum. Delaware statutory trusts are frequently used in the creation of commodity and digital asset funds, offering a legal foundation for pursuing regulatory clearance.
Solana (SOL), currently the fifth-largest digital asset by market capitalization, would be the underlying asset of the proposed ETF. If approved, this product would offer investors direct exposure to Solana's price movements without the need for personal crypto custody or wallets.
U.S. regulators have so far only approved spot ETFs for Bitcoin and Ethereum. The proposed Solana fund would mark a significant shift, reflecting increasing investor demand for diversified crypto-based financial instruments.
Invesco and Galaxy already co-manage BTCO, a spot Bitcoin ETF, and their focus on a Solana-based offering highlights a broader industry trend toward altcoin ETFs. Industry analysts believe that formal filings for Solana ETFs could set the stage for another wave of SEC deliberations in the near future.
As of now, the SEC has made no public commitment regarding its stance on Solana or other altcoin-based ETFs. Past rejections have typically centered on concerns about market transparency and asset custody. However, with recent spot Bitcoin and Ethereum ETF approvals, optimism is growing that the regulatory climate may be shifting.
Once Invesco and Galaxy submit their formal ETF proposal, the SEC will have up to 240 days to evaluate and issue a decision, potentially setting a precedent for the future of altcoin ETFs in the U.S. financial market.