In a growing sign of confidence in Solana, asset managers Invesco and Galaxy Digital have officially submitted paperwork to the U.S. Securities and Exchange Commission (SEC) for a spot Solana exchange-traded fund (ETF). This filing marks the ninth Solana ETF proposal seeking approval in the United States, signaling intensifying competition among issuers eager to capitalize on Solana’s institutional momentum.

Invesco and Galaxy Enter the Fray

According to a Form S-1 filed on June 26, the proposed ETF will be known as the “Invesco Galaxy Solana Trust.” The fund is structured to provide direct exposure to Solana (SOL), the sixth-largest digital asset by market capitalization. The ETF, if approved, would trade under the ticker symbol QSOL on the Cboe BZX Exchange. Coinbase Custody has been named as the custodian for the fund’s SOL holdings, offering secure storage and institutional oversight.

The filing also indicates that the fund may stake a portion of its Solana holdings to earn token rewards. These staking returns would be classified as income to the trust, potentially enhancing the ETF’s yield and appeal to yield-focused investors.

Regulatory Process and Timeline

The submission of the S-1 form marks only the initial step in the regulatory process. Invesco and Galaxy must also file a Form 19b-4, which is required to propose a rule change to permit the ETF to be traded on an exchange. Once the 19b-4 is filed, the SEC will initiate a public comment and review period, which could last up to 240 days.

While there is no fixed timeline for approval, analysts and market participants are closely watching for signals. Several Solana ETF applications are currently pending review, and deadlines for final decisions fall later this year, primarily in October. However, analysts at Bloomberg, including James Seyffart and Eric Balchunas, believe there is a high likelihood the SEC could act earlier. They estimate a 90% chance that decisions on some filings may come as soon as July.

Altcoin ETFs Gain Momentum

The filing from Invesco and Galaxy comes amid rising institutional interest in crypto assets beyond Bitcoin and Ethereum. Solana, in particular, has seen substantial growth across decentralized finance (DeFi), NFTs, and real-world asset tokenization. Its high-speed, low-cost blockchain has made it a favorite among developers and venture capitalists alike.

In recent months, several prominent firms including VanEck, Grayscale, Bitwise, and Fidelity have submitted similar filings for Solana ETFs. These issuers are aiming to be first to market in a segment that is expected to grow rapidly if the SEC begins to accept altcoin-based products.

While U.S. regulators have only approved spot ETFs for Bitcoin and Ethereum so far, the emergence of CME-listed Solana futures has added weight to the case for a Solana ETF. Regulators have previously pointed to the existence of a futures market as a necessary component for market oversight and manipulation protection.

What Makes the Invesco-Galaxy Proposal Unique

Aside from being the ninth filing, the Invesco Galaxy Solana Trust includes an additional feature that could differentiate it from competitors: staking. The option to stake a portion of the fund’s assets allows it to potentially generate additional income, a structure that mirrors yield-bearing ETFs in traditional finance.

With Coinbase Custody providing security for the trust’s assets, the ETF is positioned to meet the compliance and safety standards increasingly demanded by regulators and institutional investors alike.

The Broader Implications for Crypto ETFs

The race to bring the first Solana ETF to market represents a broader shift in the digital asset investment landscape. If the SEC approves any of the pending applications, it would mark the first time a non-Bitcoin or Ethereum cryptocurrency is recognized at this level by regulators.

Approval could pave the way for ETFs based on other altcoins such as Cardano (ADA), XRP, and Avalanche (AVAX). It may also encourage more traditional financial institutions to create structured products that include baskets of crypto assets, offering retail and institutional investors broader exposure to the sector.

The outcome of these ETF applications could reshape crypto investment in the U.S., making digital assets more accessible and integrated into traditional portfolios. For now, market watchers are waiting for the SEC’s next move.

Industry Outlook

The increase in Solana ETF filings reflects growing confidence in Solana as an institutional-grade asset. Solana’s speed, low fees, and ecosystem activity have positioned it as a leading blockchain contender beyond Bitcoin and Ethereum.

With Invesco and Galaxy joining the queue, the total number of applicants continues to rise, each vying for first-mover advantage. This race is not just about getting a product to market—it’s about shaping the future of how digital assets are accessed by mainstream investors.

If regulators greenlight Solana ETFs in the coming months, it could redefine the next phase of crypto adoption in the United States, offering legitimacy and broader participation in one of the most promising crypto ecosystems.