The cryptocurrency world is buzzing as Cboe BZX files for the Invesco Galaxy Solana ETF, a groundbreaking step toward regulated Solana exposure. This move could reshape how investors access $SOL, blending traditional finance with blockchain innovation.
What’s Inside the Solana ETF Filing?
Cboe BZX’s 19b-4 filing with the SEC outlines a collaborative effort between Invesco and Galaxy Digital to list a Solana ETF. Key features include:
- Tracking the Lukka Prime Solana Reference Rate for real-time pricing.
- Support for cash and in-kind share creation/redemption.
- Potential staking of Solana holdings for additional yield.
Could the Solana ETF Be Approved by September?
Cboe’s proposed rule changes suggest a streamlined approval timeline, mirroring past crypto ETF patterns. If accepted, the Solana ETF could launch by September 17, six months after CME Solana futures debuted. This shift may also transfer some regulatory oversight from the SEC to the CFTC.
Regulatory Delays and Proof-of-Stake Risks
The SEC has delayed decisions on other crypto ETFs, reflecting cautious scrutiny. Meanwhile, Komodo’s CTO highlights centralization risks in Solana’s PoS model, where a few validators control significant staked $SOL. Market manipulation concerns persist due to Solana’s shorter trading history.
How Liquid Staking Tokens Could Boost the Solana ETF
LSTs like $jitoSOL may help ETFs meet liquidity requirements, offering staking rewards without asset lock-up. $jitoSOL is already part of the REX-Osprey Solana Staking ETF ($SSK), signaling growing ecosystem trust.
FAQs
Q: When could the Solana ETF launch?
A: If Cboe’s rule changes are accepted, approval could come by September 17, 2025.
Q: What benchmarks will the Solana ETF track?
A: It will use the Lukka Prime Solana Reference Rate, updated every 15 seconds from major exchanges.
Q: Are there risks with Solana’s PoS model?
A: Yes, centralization and validator collusion risks exist due to uneven token distribution.
Q: How does staking work in the ETF?
A: A portion of Solana holdings may be staked through trusted providers, offering additional yield.
