Solana ETF on the Horizon: Invesco and Galaxy Digital Take a Leap
Registered Solana ETF Trust in Delaware by Invesco and Galaxy
Things are heating up in the world of crypto as Invesco and Galaxy Digital register the "Invesco Galaxy Solana Trust" in Delaware, marking a significant stride towards the launch of a Solana exchange-traded fund (ETF) in the United States. This move follows similar strategies by asset managers exploring crypto ETF offerings beyond Bitcoin and Ethereum [Source: Base Article].
The registration doesn't guarantee approval but allows the companies to proceed with regulatory filings. It's a testament to the increasing interest in Solana as a popular cryptocurrency. Solana currently stands as the fifth-largest crypto by market value [Source: Base Article]. A spot ETF would offer direct exposure to the token without the hassle of managing private wallets.
The structure of this trust, much like other crypto ETF proposals filed by VanEck, 21Shares, Bitwise, and others, mirrors Delaware statutory trusts that are commonly utilized for commodity and digital asset funds [Source: Base Article]. Following this registration, the teams are expected to file an S-1 with the Securities and Exchange Commission and a 19b-4 submission through a national exchange [Source: Base Article].
If approved, the Solana ETF would join the ranks of Bitcoin and Ethereum ETFs, which have already received the green light [Source: Base Article]. The regulatory landscape remains uncertain regarding the approval of such products, as the SEC has historically shown hesitance towards crypto ETFs due to concerns about market surveillance and custody [Source: Base Article]. However, the recent approval of spot Bitcoin and Ethereum ETFs has set a hopeful precedent for other issuers.
The next step for Invesco and Galaxy would be to submit the ETF application to the SEC and wait for a response within the standard 240-day review period [Source: Base Article]. Meanwhile, ongoing optimism points to an 90% to 91% likelihood of approval for the entire year, according to Polymarket [Enrichment Data]. Although the near-term outlook may be less certain, the increasing interest from institutional investors like Invesco and Galaxy could significantly boost Solana’s adoption and market visibility [Enrichment Data].
- Invesco and Galaxy Digital's registration of the "Invesco Galaxy Solana Trust" opens the door for a potential Solana ETF, moving beyond Bitcoin and Ethereum offerings in the realm of crypto finance.
- Solana ETF, if approved, would provide direct exposure to the Solana token without the need to manage private wallets, reflecting a growing interest in this popular cryptocurrency.
- The structure of the Solana ETF, mimicking Delaware statutory trusts, is common in commodity and digital asset funds, similar to proposals by VanEck, 21Shares, Bitwise, and others.
- The Solana ETF, potentially joining Bitcoin and Ethereum ETFs if approved, could face uncertain regulatory approval given the SEC's historically cautious stance towards crypto ETFs.
- Recent approvals of spot Bitcoin and Ethereum ETFs have instilled hope for the approval of other crypto ETFs, including the Solana ETF, and the increasing interest from institutional investors could significantly enhance Solana’s adoption and market visibility.
