Invesco & Galaxy Digital Register Solana ETF Trust: A Major Step Toward Expanding Crypto Investment Options

In a significant development for the cryptocurrency investment landscape, Invesco and Galaxy Digital have taken a crucial preliminary step toward launching the first Solana exchange-traded fund (ETF) in the United States. The two asset management giants filed to register a trust in Delaware for a proposed Solana ETF on June 12, 2025, marking a key early step toward launching the fund.

The Delaware Trust Registration: Setting the Foundation

Public records show that the firms registered a trust named Invesco Galaxy Solana ETF with Delaware's Division of Corporations on June 12. The registration, officially listed as the "Invesco Galaxy Solana Trust," represents one of the introductory steps toward bringing a spot Solana ETF to American investors.

It's important to note that this Delaware registration does not guarantee approval or listing of the ETF. Instead, it serves as a foundational legal structure that allows the firms to proceed with more substantive regulatory filings with federal agencies. Delaware statutory trusts are commonly used structures for commodity and digital asset funds, providing the necessary legal framework for managing investor assets.

Following Industry Precedent

The structure employed by Invesco and Galaxy Digital mirrors similar trusts that have been filed by other major asset managers in recent months. Companies including VanEck, 21Shares, and Bitwise have all established comparable trust structures as they seek to expand their cryptocurrency ETF offerings beyond the currently approved Bitcoin and Ethereum products.

This coordinated approach by multiple asset managers suggests a broader industry recognition that the regulatory environment may be becoming more favorable for cryptocurrency ETFs beyond the initial Bitcoin and Ethereum approvals. The synchronization of these efforts also indicates that firms are positioning themselves to quickly capitalize on potential regulatory changes.

Understanding Solana's Market Position

Solana currently holds the position as the fifth-largest cryptocurrency by market capitalization, with a market cap of approximately $77.2 billion. Trading at around $146.28 per token, Solana has established itself as a significant player in the blockchain ecosystem, known for its high-speed transaction processing and growing ecosystem of decentralized applications.

The cryptocurrency has experienced typical market volatility, with recent 24-hour trading showing a slight decline of 0.37% and a weekly decrease of 4.02%. Despite these short-term fluctuations, Solana's substantial market position and technological capabilities make it an attractive target for institutional investment products.

The Regulatory Pathway Ahead

The Delaware trust registration sets the stage for what will likely be a complex regulatory process. The next major steps will include filing an S-1 registration statement with the Securities and Exchange Commission (SEC) and submitting a 19b-4 form through a national securities exchange. These filings will provide detailed information about the proposed ETF's structure, fees, and operational procedures.

Currently, U.S. regulations only permit spot ETFs for Bitcoin and Ethereum, which have already received approval from regulatory authorities. Expanding this approval to include Solana would represent a significant broadening of the cryptocurrency ETF landscape and could potentially pave the way for additional altcoin ETFs in the future.

The Appeal of Spot ETFs for Investors

A spot Solana ETF would provide investors with direct exposure to Solana's price movements without requiring them to manage private cryptocurrency wallets or navigate complex cryptocurrency exchanges. This accessibility is particularly valuable for institutional investors and retail investors who prefer the familiar structure and security of traditional financial products.

The ETF structure also offers several advantages over direct cryptocurrency ownership, including regulatory oversight, professional management, and the ability to hold the investment in traditional brokerage accounts alongside stocks and bonds. For many investors, these benefits outweigh the slight premium that ETFs typically carry over their underlying assets.

Market Sentiment and Approval Prospects

Data from prediction market Polymarket shows a 91% probability that such a product will receive approval in 2025, reflecting growing optimism about the regulatory environment for cryptocurrency ETFs. This high probability suggests that market participants believe the regulatory landscape is becoming more accommodating to cryptocurrency investment products.

The optimism surrounding potential approval appears to be driven by several factors, including the successful launch and operation of Bitcoin and Ethereum ETFs, the evolving regulatory framework under the current administration, and the growing institutional acceptance of cryptocurrency as a legitimate asset class.

Broader Implications for the Cryptocurrency Market

The registration of the Invesco Galaxy Solana Trust has implications that extend beyond just Solana. Success in bringing a Solana ETF to market could establish a template for other cryptocurrency ETFs, potentially accelerating the introduction of investment products for other major cryptocurrencies.

Regulatory approval would not only legitimize Solana as an investable asset but also set a precedent for other altcoin ETFs, potentially accelerating the development of a more diverse cryptocurrency ETF ecosystem. This could lead to increased institutional adoption of various cryptocurrencies and further integration of digital assets into traditional financial markets.

The Partnership: Invesco and Galaxy Digital

The collaboration between Invesco and Galaxy Digital brings together significant expertise in both traditional asset management and cryptocurrency specialization. Invesco, a global investment management company with over $1.7 trillion in assets under management, provides the traditional financial infrastructure and regulatory experience necessary for ETF development.

Galaxy Digital, founded by Mike Novogratz, brings deep cryptocurrency expertise and has been at the forefront of institutional cryptocurrency adoption. The partnership combines Invesco's ETF management capabilities with Galaxy's cryptocurrency market knowledge, creating a formidable team for navigating the complex process of bringing a cryptocurrency ETF to market.

Technical and Operational Considerations

Launching a Solana ETF involves numerous technical challenges beyond regulatory approval. The fund will need to establish secure custody arrangements for holding Solana tokens, develop pricing mechanisms that accurately reflect market conditions, and create operational procedures for handling subscriptions and redemptions.

The custody question is particularly critical, as the fund will need to ensure the security of potentially billions of dollars worth of Solana tokens while maintaining the liquidity necessary for ETF operations. This requires sophisticated security measures and operational procedures that meet both cryptocurrency best practices and traditional financial regulatory requirements.

Competition and Market Dynamics

The race to bring a Solana ETF to market is intensifying, with multiple asset managers pursuing similar strategies. This competition could benefit investors through lower fees and improved product features, as companies strive to differentiate their offerings in what could become a crowded market.

The timing of regulatory filings and approvals could also create first-mover advantages for companies that successfully navigate the regulatory process quickly. Early entrants to the market typically capture significant market share, making the current positioning phase particularly important for long-term success.

Looking Ahead: Timeline and Expectations

While the Delaware trust registration represents a significant step forward, the path to a launched Solana ETF remains uncertain. The regulatory review process can take months or even years, depending on the complexity of the filing and the SEC's review priorities.

Investors and market participants will be closely watching for the formal SEC filings that should follow the Delaware registration. These documents will provide more detailed information about the proposed ETF's structure and could offer insights into the likely timeline for regulatory review and potential approval.

The success of this initiative could mark a turning point in cryptocurrency ETF development, potentially opening the door to a new era of cryptocurrency investment products that bring digital assets fully into the mainstream financial system. For now, the registration of the Invesco Galaxy Solana Trust represents a crucial first step in what promises to be a closely watched regulatory and market development process.