Invesco and Galaxy Digital have filed for a spot Solana ETF, named the Invesco Galaxy Solana ETF, with the U.S. Securities and Exchange Commission (SEC). The proposed ETF, which would trade on the Cboe BZX Exchange under the ticker “QSOL,” aims to track the spot price of Solana (SOL), the sixth-largest cryptocurrency by market cap.
This marks the ninth Solana ETF filing in the U.S., joining other issuers like VanEck, Bitwise, Grayscale, 21Shares, Canary Capital, Franklin Templeton, and Fidelity. The filing includes provisions for staking SOL to generate additional yield, with Coinbase Custody as the custodian and Invesco Capital Management as the sponsor.
A spot Solana ETF would provide institutional investors with a regulated vehicle to gain exposure to Solana (SOL) without directly holding the cryptocurrency. This could drive significant capital inflows, boosting Solana’s market liquidity and price stability. The filing reflects growing mainstream acceptance of Solana, known for its high-speed, low-cost blockchain, potentially solidifying its position as a competitor to Ethereum.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026): big discounts for early bird.
Tekedia AI in Business Masterclass opens registrations.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab: From Technical Design to Deployment (next edition begins Jan 24 2026).
Approval could catalyze price appreciation for SOL, as seen with Bitcoin and Ethereum ETFs, where inflows led to significant rallies. For context, Bitcoin ETFs saw $50 billion in inflows within months of approval, and Solana’s smaller market cap (~$76 billion as of August 2025) could amplify price sensitivity to new investment. Increased visibility may attract retail investors, further driving demand and potentially reducing volatility over time.
Approval would signal a more crypto-friendly SEC, especially under a potentially pro-crypto administration. It could pave the way for other altcoin ETFs, diversifying crypto investment options. However, rejection or delays (e.g., due to concerns over market manipulation or staking complexities) could dampen market sentiment and slow Solana’s institutional uptake.
The ETF’s staking mechanism could increase Solana’s network security by locking up more SOL tokens, reducing circulating supply and potentially supporting price appreciation. Institutional staking may further decentralize Solana’s validator network, enhancing its credibility and resilience.
Impact of Staking on Costs
Staking SOL typically yields 5-7% annually (based on current Solana network rates). This passive income could offset some of the ETF’s operational costs, such as management fees, custody fees, and administrative expenses. For example, if the ETF stakes 50% of its SOL holdings at a 6% yield, it could generate 3% annual returns on those assets, potentially lowering the net expense ratio for investors.
Staking introduces risks like slashing (penalties for validator downtime) or smart contract vulnerabilities, which could lead to losses. The ETF may need to allocate funds for risk management or insurance, potentially increasing fees. Managing staking (e.g., selecting validators, monitoring performance) requires additional infrastructure and expertise, likely increasing administrative costs passed on to investors.
Staking rewards may be treated as taxable income in the U.S., which could complicate the ETF’s tax structure and increase costs for investors, depending on how Invesco structures distributions. Without specific fee disclosures, it’s unclear whether staking will result in a lower expense ratio compared to non-staking ETFs (e.g., Bitcoin ETFs typically charge 0.2-0.4%). The staking yield could offset fees, but additional costs from staking management might neutralize this benefit.
For comparison, the 21Shares Core Solana ETF (also staking-enabled) has not disclosed fees, but industry speculation suggests Solana ETFs may aim for competitive fees around 0.3-0.5% to attract investors. Staking could make the ETF more attractive by offering higher returns than a non-staking Solana ETF, assuming yields are passed to investors.
The Invesco Galaxy Solana ETF could significantly boost Solana’s adoption and price, especially if approved by October 2025. Staking offers the potential to lower costs through yield generation but introduces complexities that may increase fees or risks. Investors should monitor the ETF’s final expense ratio and staking strategy (e.g., percentage of assets staked, validator selection) once disclosed.