Simply put
- The proposed Invesco Galaxy Fund aims to track the performance of Solana.
- Currently, various companies like Fidelity, Vaneck, and Bitwise have applied to create Solana ETFs.
- The CBOE is seeking changes to the 19B-4 rule that would permit a set of funds based in Canary Capital, Peng.
On Wednesday, U.S. regulators commented on the proposed Solana Exchange-Traded Fund. This change in rules may enable a range of investment products linked to Pudgy Penguins Tokens.
The Invesco Galaxy Solana ETF, measured by market cap, is set to join a list of eight other funds that track the sixth largest cryptocurrency.
In the meantime, the CBOE’s 19B-4 request suggests that Canary Pengu ETFs could be traded in the exchange.
This application is part of a broader trend in the active crypto ETF space, especially following the success of Bitcoin and Ethereum funds in recent months, and with a more favorable political atmosphere for crypto products.
The SEC is currently reviewing over 20 applications for Altcoin-based ETFs that include Solana, alongside XRP, Dogecoin, Cardano, Polkadot, and Hedera.
Earlier this month, seven Solana Fund issuers sent a revised S-1 form to the SEC, clarifying the terminology regarding their staking activities.
Staking generally involves committing tokens to a decentralized network in return for rewards or financial compensation.
The addition of the ETF has raised some debate among federal regulators, especially since staking decisions for the Ethereum ETF have been delayed due to concerns over financial and security risks associated with the method.
As for Solana, XRP, and Litecoin Spot ETFs, there’s a notable 95% chance they could receive approval from the SEC by the end of 2025, which feels like a solid estimate, according to Bloomberg’s analysts.
Other applications for Spot ETFs involving Dogecoin, Cardano, Polkadot, Hedera, and Avalanche show a 90% likelihood of approval by year-end. It’s interesting how the recent successes of BTC and ETH ETFs have led to net investments of $47 billion and $4 billion, respectively, which many found unexpected.
The Investco Galaxy Solana ETF will trade under the ticker QSOL. Galaxy Digital Funds will manage the buying and selling of Sol for the fund, with Coinbase acting as the custodian.
Canary Capital, a company focused on crypto investments, filed for the Pudgy Penguin Fund in March, as part of an array of Altcoin ETFs proposed to the SEC.
Recently, Solana traded at around $143, experiencing a slight dip of nearly 1% in the past day.
Over the last month, it’s seen a decrease of about 18%, aligned with the trends in many altcoins. But its speed and efficiency continue to make it a favorite among developers.
As for Penn, it’s remained relatively stable since Tuesday, albeit down 22% over the past month.
