A new proposed exchange-traded fund (ETF) that would track the performance of Solana has been submitted by Invesco. This application adds to the growing interest in Solana-related financial products, as multiple firms including Fidelity, VanEck, and Bitwise have also filed for similar ETFs targeting Solana.
On Wednesday, U.S. regulators received separate filings seeking to introduce not only the Solana ETF but also a proposed rule change from Cboe that would allow the listing of an investment fund linked to Pudgy Penguins tokens. The Invesco Galaxy Solana ETF is one of nine funds aiming to track the performance of the sixth-largest cryptocurrency in terms of market capitalization.
This surge in ETF filings aligns with a broader trend in the cryptocurrency space, marked by the recent successes of spot Bitcoin and Ethereum ETFs. The regulatory landscape for crypto products has become more favorable, with U.S. Securities and Exchange Commission (SEC) officials currently considering over two dozen applications for altcoin-based ETFs, including those for Solana, XRP, Dogecoin, Cardano, Polkadot, and Hedera.
Earlier this month, seven Solana fund applicants submitted amended S-1 forms to the SEC, clarifying their staking strategies. Staking involves committing tokens to a blockchain network in return for rewards, though it remains a contentious issue among regulators due to potential financial risks. Following the success of Bitcoin and Ethereum ETFs, analysts have increased expectations for the approval of Solana spot ETFs, estimating a 95% chance of approval from the SEC by the end of 2025, alongside high probabilities for other altcoin ETFs.
At present, Solana is trading at approximately $143, a decline of about 18% over the last month amidst a general downturn in altcoins. Despite this, Solana continues to attract developers due to its advanced speed and efficiency, indicating future growth potential.
This optimistic outlook on altcoin ETFs highlights a growing acceptance of innovative cryptocurrency financial products and suggests that the market could see increased activity in the coming years.