Solana ETF application filed by Invesco Galaxy:SEC's potential approval confirmed?
The Invesco Galaxy Solana ETF, a proposed fund aimed at offering direct exposure to Solana (SOL) by holding actual tokens and staking a portion for rewards, is currently under early review by the U.S. Securities and Exchange Commission (SEC).
The Cboe BZX Exchange filed the ETF proposal to the SEC for approval to list the fund. The SEC review process is in its initial stages, with no set decision date. Regulatory approval could take several months, potentially toward the October 2025 timeframe when other crypto ETF decisions, such as Grayscale's Solana ETF, are expected.
The ETF would differ from futures-based funds by holding SOL tokens directly, enhancing investor access with traditional brokerage accounts and regulatory oversight from Cboe. Past SEC hesitation around spot crypto ETFs centres on market manipulation and investor protection concerns, but recent approvals of Bitcoin and Ethereum spot ETFs in 2024, as well as staking-enabled products, may signal increasing regulatory openness.
Approval of either the Invesco Galaxy or competing Grayscale Solana ETFs would mark a milestone in the institutional acceptance of SOL and altcoin ETFs more broadly. The Invesco Galaxy Solana ETF, if approved, would become the second U.S.-listed product offering direct exposure to SOL with staking.
The SEC's new crypto ETF disclosure guidance may indicate a potential shift in the regulatory landscape for crypto investment vehicles. Polymarket data shows over 99% odds in favour of a Solana ETF approval, marking the highest confidence level since altcoin ETFs began gaining traction.
However, it's important to note that the SEC's final decision on the Invesco Galaxy Solana ETF remains uncertain. The SEC has rejected two other ETFs, but the approval of the Invesco Galaxy Solana ETF is not certain. The U.S. SEC has delayed its decisions on the Truth Social's proposed Bitcoin ETF and Grayscale's Solana ETF, with reviews now scheduled for the 18th of September.
The proposed ETF comes just weeks after the launch of the first U.S. Solana Staking ETF, indicating a rising demand for crypto investment products that combine yield generation with regulatory oversight. Both the Invesco Galaxy Solana ETF proposal and the success of the REX-Osprey Sol + Staking ETF reflect a growing appetite for regulated crypto investment vehicles that combine token ownership with yield opportunities.
Investors should monitor SEC announcements for final approval and conditions. The market sentiment appears overwhelmingly optimistic regarding a Solana ETF approval, but the final decision lies with the SEC. The performance of Solana's token remains cautious, trading at $185.43 after dipping 3.54% in the last 24 hours.
- The Invesco Galaxy Solana ETF, currently under SEC review, aims to provide direct exposure to Solana (SOL) by holding actual tokens and staking a portion for rewards.
- Approval of the Invesco Galaxy Solana ETF, if it occurs, would mark a milestone in the institutional acceptance of SOL and altcoin ETFs, and would become the second U.S.-listed product offering direct exposure to SOL with staking.
- The Cboe BZX Exchange filed the ETF proposal to the SEC for approval to list the fund, with exotic Bitcoin (BTC), Dogecoin (DOGE), Ethereum (ETH), and XRP being some examples of potential crypto tokens that the ETF might indirectly expose investors to through their market movements.
- The SEC's review process for crypto Exchange-Traded Funds (ETFs), including the Invesco Galaxy Solana ETF and Grayscale's Solana ETF, has been known to take several months, potentially extending until October 2025.
- In the financial world of investing, technology plays a crucial role in enabling crypto ETFs, as it facilitates token ownership, staking, and the integration of traditional brokerage accounts for these new investment vehicles.
- Regardless of the overwhelmingly optimistic market sentiment regarding a Solana ETF approval, the final decision on the Invesco Galaxy Solana ETF lies with the SEC, and any further developments or announcements from the commission should be closely monitored by investors.
