The institutional race to capture Solana’s market potential has intensified as Invesco and Galaxy Digital submitted their spot Solana ETF application to regulators, marking the ninth such filing from major asset managers. The proposed Invesco Galaxy Solana ETF would directly hold SOL tokens and track the cryptocurrency’s spot price, targeting the sixth-largest digital asset by market capitalization currently trading around $144. This latest submission joins a competitive field that includes established players like VanEck, Bitwise, and Grayscale, all vying to bring the first Solana ETF to traditional investors.
The surge in Solana ETF applications represents asset managers’ strategy to expand beyond the highly successful itcoin">Bitcoin and Ethereum ETF launches that dominated 2024. itcoin">Bitcoin ETFs generated unprecedented institutional interest and billions in inflows when they debuted in early 2024, while Ethereum ETFs later achieved more modest but still significant adoption. These successes have emboldened fund managers to explore altcoin opportunities, with Solana emerging as the clear frontrunner due to its established ecosystem, strong developer activity, and proven scalability for decentralized applications.
The regulatory environment has become increasingly favorable for cryptocurrency ETF approvals under the current administration’s more crypto-friendly stance. President Trump’s promises to ease regulation">digital asset regulations have sparked widespread optimism throughout the industry, contributing to itcoin">Bitcoin reaching new all-time highs and prompting numerous public companies to allocate billions toward long-term itcoin">Bitcoin investments. This regulatory shift has created a conducive atmosphere for innovative financial products, encouraging asset managers to pursue more diverse cryptocurrency exposure through ETF structures.
If approved by the SEC, the Invesco Galaxy Solana ETF would trade on the Cboe BZX exchange under the ticker “QSOL,” providing traditional investors with regulated access to Solana’s price movements without directly holding the cryptocurrency. The firms must still submit the crucial Form 19b-4 rule change documentation before the SEC can begin its formal review process. With nine competing applications now in the pipeline, the approval of the first Solana ETF could trigger a wave of similar products, potentially transforming how institutional and retail investors access the broader cryptocurrency ecosystem beyond itcoin">Bitcoin and Ethereum.
