Wall Street asset management firm Invesco Capital Management and crypto asset-focused company Galaxy Digital have filed a registration statement with the US Securities and Exchange Commission (SEC) for an exchange-traded product backed by Solana (SOL).
If approved, the Invesco Galaxy Solana ETF, as it will be known, would trade on the Cboe BZX exchange under the ticker symbol “QSOL”, aiming to track the spot price of the sixth-largest cryptocurrency by market capitalization.
Invesco and Galaxy Digital File SEC Statements for Spot Solana ETF With Staking Support
The Form S-1 registration statement made on Wednesday declares that the pair is launching a crypto-backed security that would “reflect the performance of the spot price of Solana” and directly hold the underlying asset in the same way as other competing ETFs.
Invesco would be the fund’s sponsor, with the Bank of New York Mellon serving as an administrator, and Galaxy responsible for acquiring the SOL tokens. The filing also noted that Coinbase Custody, the custody arm of crypto exchange Coinbase, would act as the custodian of the ETF’s assets.
The filing also noted that Invesco and Galaxy could stake a portion of the fund’s SOL “from time to time” through “one or more” trusted staking providers. QSOL would receive more Solana tokens for locking up some of its holdings, which would be treated as income to the Trust fund.
Earlier this month, the SEC requested that spot Solana ETF issuers update their S-1 filings to include language and provisions for staking. Fidelity, 21Shares, Franklin Templeton, Grayscale Investments, Bitwise Investments, Canary Capital, and VanEck have amended their filings. QSOL is the ninth proposal for a potential Solana-based ETF.
Most of these proposals were submitted over the past year following the expectation that, under the Trump administration, the securities watchdog would be more supportive of crypto-backed investment products as the President promised to support innovation and growth in the digital asset sector through a friendlier regulatory approach.
The SEC was forced into approving the listing and trading of spot Bitcoin ETFs under the Biden administration last year following a pivotal court ruling that said the agency had rejected Grayscale’s attempts to convert its Bitcoin Trust fund into a spot ETF on unfair grounds. The regulatory body, under the leadership of former chairman Gary Gensler, was cracking down heavily on crypto firms through lawfare and regulatory action. However, Trump’s SEC, led by Paul Atkins, is exploring market opportunities for the novice asset class.
Issuers are testing the market’s appetite for altcoin-backed investment products after the tremendous success of Bitcoin ETFs, which launched in January 2024, and milder wins for funds tied to Ether (ETH) that began trading six months later.
Bloomberg Analysts 90% Certain of Solana ETFs in 2025
Bloomberg senior ETF analyst James Seyffart said in a June 10 note that the SEC “may act early” on spot Solana ETF filings and could approve them as early as July alongside ETFs tracking a basket of cryptocurrencies. He also suggested that it is possible the funds could be launched with staking support, alongside approvals for spot Ether ETF staking.
His colleague Eric Balchunas urged markets “to be prepared” for a potential altcoin ETF summer with Solana leading the way. Bloomberg Intelligence has increased its estimated odds of the SEC greenlighting Solana ETFs in 2025 to 90%. The regulator’s final deadline to approve the instruments is October 10, and chances are that all of them will launch concurrently to avoid any first-mover advantage.
All nine Solana ETF issuers, bar Canary Capital, have already launched crypto ETPs in the form of spot Bitcoin and Ether ETFs. The firms will need to submit a Form 19b-4 proposing a rule change for the agency to begin the process of reviewing and approving the ETF. Meanwhile, Canary hopes to list ETFs for multiple cryptocurrencies, including Injective (INJ), Pudgy Pendguins (PENGU), Tron (TRX), Cronos (CRO), XRP, SUI, and SOL.
SEC Commissioner Hester Peirce Says In-Kind Redemptions for Crypto ETFs are Under Consideration
Speaking during a panel at the Bitcoin Policy Summit 2025 on Wednesday, SEC Commissioner Hester Peirce said that in-kind redemptions for crypto ETFs could be coming soon.
Firms such as BlackRock, VanEck, and WisdomTree have filed Form 19b-4 with the agency to allow in-kind creations and redemptions instead of cash for the iShares Bitcoin Trust (BlackRock), VanEck Bitcoin Trust, VanEck Ethereum Trust, and WisdomTree Bitcoin Fund ETFs.
Issuers were hashing out technical details over how the redemption process would work for crypto ETFs way ahead of the SEC’s approval of the first batch of Bitcoin ETFs. However, the regulator favored a cash model, requiring the firms to move BTC or ETH out of their storage, sell it at market price, and then give the cash back to the investor.
Peirce said that those proposals are currently under review, and considering the market demand, it is “certainly on the horizon”. Analysts have previously suggested that an in-kind redemption model would allow crypto-backed ETPs to be traded more efficiently.
At the time of writing, Solana (SOL) is trading at $144.59, down 0.65% in the last 24 hours
