Invesco Galaxy Solana ETF Files with SEC: First Staking-Enabled SOL Fund Proposed

The landscape of digital asset investment products is undergoing a significant evolution with the filing of the Invesco Galaxy Solana Exchange-Traded Fund (ETF) by the Cboe BZX Exchange to the U.S. Securities and Exchange Commission (SEC). This proposed ETF, a collaboration between asset management giant Invesco and crypto-focused financial firm Galaxy Digital, marks a notable stride in offering regulated exposure to the Solana (SOL) blockchain. Uniquely, this fund is designed to incorporate a direct staking component, which, if approved, would position it as the first U.S.-listed Solana ETF to generate additional returns through staking its underlying SOL holdings.

• The Invesco Galaxy Solana ETF application has been filed by the Cboe BZX Exchange with the U.S. SEC.
• If approved, it would be the first U.S.-listed Solana ETF to include a direct staking component.
• The fund is a collaboration between asset manager Invesco and Galaxy Digital.
• It will utilize the Lukka Prime Solana Reference Rate for pricing its underlying SOL holdings.
• Cboe BZX argues for Solana’s market integrity and high liquidity to mitigate manipulation.
• This filing follows other staking-enabled ETF proposals, signaling a broader market trend.

The core proposition of the Invesco Galaxy Solana ETF is to offer investors regulated, direct access to the performance of SOL. To ensure precise pricing, the fund intends to utilize the Lukka Prime Solana Reference Rate, which updates every 15 seconds. This reference rate aggregates spot market prices from a diverse array of large and small exchange platforms, including prominent names like Binance, Coinbase, Kraken, and OKX, aiming for a comprehensive and representative valuation of Solana.

Arguments for Market Integrity

In its comprehensive filing, Cboe BZX presented a detailed argument asserting Solana’s market integrity, a critical determinant for the SEC when evaluating digital asset ETFs. The exchange contended that Solana’s robust market structure significantly mitigates susceptibility to price manipulation, a concern that has historically led to the rejection of numerous crypto ETF proposals. Cboe specifically highlighted Solana’s global 24/7 trading activity across both decentralized and centralized markets. This inherent fragmentation, coupled with Solana’s substantial current 24-hour trading volume, which recently stood at approximately $2.78 billion, is cited as compelling evidence of its high liquidity and reduced vulnerability to manipulation by any single entity.

While the CME introduced futures on Solana in March 2025, Cboe noted that the trading volumes for these derivatives have not yet reached the “material” threshold typically favored by regulators for robust price discovery. Nevertheless, Cboe steadfastly maintains that SOL’s spot market is “mature, liquid, fair, and transparent,” a claim supported by active arbitrage mechanisms and a notable absence of insider-held information. This line of reasoning closely aligns with the rationale that underpinned the SEC’s recent approvals of spot Bitcoin and Ethereum ETFs, thereby suggesting a potential precedent for similar arguments concerning other digital assets.

The Staking Innovation and Broader Market Impact

A distinctive and innovative feature of the Invesco Galaxy Solana ETF is its integrated staking mechanism. The fund plans to strategically stake a portion of its underlying SOL holdings with selected validators, thereby generating a consistent revenue stream from staking rewards. These rewards would be accounted for as income to the trust, directly enhancing the fund’s overall returns. This pioneering approach offers investors an additional layer of value and potential yield, exceeding what is typically provided by traditional exchange-traded funds.

The Solana ETF application is not an isolated event but rather indicative of a broader market shift; it follows Cboe BZX’s earlier filing for the Canary Capital Staked Injective ETF. This prior application, specifically designed to hold and stake Injective Protocol’s INJ tokens for yield generation, further underscores a burgeoning demand for staking-oriented investment products within the digital asset landscape. Both proposals collectively signify a broader trend within the financial industry: a growing confidence among fund issuers and exchanges that the SEC is becoming increasingly receptive to approving digital asset ETFs, particularly those structured with robust custody solutions, transparent pricing mechanisms, and integrated yield-generating features such as staking.

These progressive developments collectively suggest an increasing accommodation of blockchain-based assets within the mainstream financial system, extending beyond the established presences of Bitcoin and Ethereum. Should they receive approval, these staking-enabled ETFs could effectively pave the way for a new generation of digital asset investment products, offering diversified access and innovative return mechanisms to a significantly wider investor base.