BREAKING: Invesco Charges Into Solana ETF Race With Bold SEC Filing—Is SOL’s $200B Moment Coming?

Wall Street's crypto land grab intensifies as asset management titan Invesco throws its hat in the Solana ETF ring. The latest SEC filing signals institutional FOMO is reaching DEFCON levels—just don't ask how they'll custody those sweet, sweet SOL tokens.

Here's why TradFi can't quit crypto

Forget 'slow and steady'—Invesco's filing proves even conservative money managers now view blockchain exposure as non-negotiable. The move comes hot on the heels of BlackRock's Ethereum ETF approval, suggesting regulators might finally be warming to altcoins (or at least their lobbying budgets).

The custody conundrum

While Solana's blistering 400% annual throughput makes ETH look dial-up, its proof-of-history mechanics give traditional finance suits night sweats. Expect endless debates about 'network reliability' from the same people who still use fax machines.

Market impact: SOL pumps 18% on the news before some VC inevitably dumps on retail. The real winner? Lawyers—this filing's fine print could singlehandedly pay for a partner's Hamptons summer.

Coinbase and Galaxy Take Center Stage

According to the June 26 S-1 filing with the U.S. Securities and Exchange Commission (SEC), Coinbase Custody will be responsible for safekeeping the fund’s SOL holdings. Galaxy Digital, a crypto-focused investment firm, will manage the purchase and sale of Solana tokens for the fund. The proposed ETF would trade on the Cboe BZX Exchange under the ticker symbol “QSOL.”

Invesco and Galaxy Digital are no strangers to the ETF space. Their prior collaboration includes the Invesco Galaxy Bitcoin ETF. By extending this partnership to Solana, the firms appear confident that institutional investors are seeking more exposure to blockchain ecosystems beyond Bitcoin and Ethereum.

Regulatory Path: What’s Next?

Although filing a FORM S-1 is an important step in the registration process, it’s only part of the equation. For the ETF to be approved, Invesco and Galaxy must also submit a Form 19b-4 to propose a rule change with the SEC. Only then can the agency begin its review process, which includes public comment periods and detailed regulatory scrutiny.

The SEC has not yet approved any altcoin-based ETFs. However, the environment is shifting. Bloomberg analysts James Seyffart and Eric Balchunas recently suggested that there’s a strong possibility of approval in 2025. According to them, Solana ETF approval has a 95% chance of happening before the end of the year—possibly as early as the fourth quarter.

Market Sentiment Boosted by Institutional Moves

Invesco’s entry into the Solana ETF race comes on the heels of filings by other financial giants, including VanEck, Bitwise, Grayscale, and Fidelity. Each of these firms has proposed a similar product, indicating that Solana is quickly becoming the top contender in the altcoin ETF arena.

This institutional momentum is already being reflected in Solana’s market performance. The digital asset, currently ranked sixth by market capitalization, has shown strong resilience and price growth over the past few months. Analysts believe that ETF Optimism is a key driver behind the recent price uptick.

CME Data Supports Solana’s Growing Institutional Demand

Institutional enthusiasm for Solana extends beyond ETF filings. The Chicago Mercantile Exchange (CME), a major hub for regulated derivatives, has seen record-high open interest in its Solana futures market. As of last week, open interest reached 2,849 contracts, representing $146 million in notional value. This surge in activity underscores growing institutional demand for Solana exposure, even before a formal ETF is approved.

Riot Platforms and other firms have also been reported to be allocating infrastructure to altcoin-supportive frameworks, including Solana. This growing alignment between infrastructure and asset demand could give regulators more confidence that the ecosystem is maturing.

What Analysts Are Saying

Pseudonymous crypto trader Cipher X has placed the odds of Solana ETF approval by July at around 80%. He believes a successful filing could trigger a major market repricing, predicting a potential 40% to 50% move in SOL’s value in the short term.

Market analyst Cas Abbe echoed this sentiment, stating on social media platform X that Solana has bounced off a key technical support level, showing strength amid ETF-related anticipation. “I still think that approval hasn’t been priced in yet,” he wrote. “There’ll be a rally next month.”

The growing belief among traders and analysts is that Solana’s price currently underrepresents the value such an ETF could bring. If approval does come through later this year, it may shift investor portfolios in favor of Solana more aggressively.

SEC’s Approach Under the Microscope

While institutional interest is high, approval is far from guaranteed. The SEC has historically moved cautiously with digital assets, often delaying decisions and requesting additional information. In early June, the agency instructed all Solana ETF applicants to update their S-1 filings and clarify details regarding in-kind redemptions.

This request shows that the SEC is actively reviewing these filings, which could be interpreted as a sign of serious engagement rather than outright rejection. Still, the path to approval will depend on how issuers address concerns related to liquidity, custody, market manipulation, and investor protection.

Final Thoughts

Invesco’s filing is yet another sign that Solana is gaining traction in the eyes of traditional finance. As one of the most actively developed blockchains in the industry, Solana offers fast transactions and low fees—qualities that make it appealing for both retail and institutional users.

If the SEC gives the green light to a Solana ETF, it could fundamentally reshape how mainstream investors access and engage with the asset. With multiple firms now in the running, the race to become the first approved Solana ETF provider is well underway.

While nothing is certain until regulators make their final decisions, one thing is clear: Solana is no longer on the sidelines. It’s becoming a serious contender in the evolving ETF landscape—and Wall Street is paying attention.