Asset management firm Invesco and cryptocurrency specialist Galaxy Digital have formally registered the Invesco Galaxy Solana Trust as a Delaware statutory trust, marking a pivotal step toward launching a spot Solana exchange-traded fund (ETF) in the United States. This foundational legal move initiates the complex regulatory approval process despite ongoing uncertainty surrounding cryptocurrency regulations.
Solana (SOL), currently ranked as the fifth-largest cryptocurrency by market capitalization, offers institutional and retail investors high transaction throughput and low operational costs. The registration signals growing institutional demand for diversified crypto investment vehicles beyond Bitcoin and Ethereum.
The U.S. Securities and Exchange Commission (SEC) maintains historically stringent standards for spot cryptocurrency ETF approvals. However, recent authorizations for Bitcoin and Ethereum ETFs may establish a precedent for alternative blockchain assets. The formal Solana ETF application will undergo an extensive SEC review period, potentially lasting up to 240 days, with industry participants closely monitoring developments.
If approved, a spot Solana ETF would provide traditional investors with regulated, liquid exposure to SOL through conventional brokerage channels. Such accessibility could enhance portfolio diversification strategies and simplify entry into cryptocurrency markets while adhering to established compliance frameworks.