TLDR
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Invesco and Galaxy file for spot Solana ETF under ticker QSOL on Cboe BZX.
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QSOL to track SOL price via Lukka benchmark, minus fees and expenses.
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Staking included in fund structure, rewards treated as taxable income.
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Coinbase Custody to store SOL; BNY Mellon to manage fiat operations.
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QSOL joins VanEck, Bitwise and 21Shares in the race for SEC approval.
Invesco and Galaxy have filed for a spot Solana ETF to list under the ticker QSOL on the Cboe BZX Exchange. The Solana ETF aims to track the spot price of SOL using Lukka’s benchmark rate, minus fees and expenses. This marks another push into crypto-linked financial products following the SEC’s greenlighting of Bitcoin and Ethereum ETFs.
QSOL to Track Solana Price Through Daily Benchmark Rate
The proposed Solana ETF, the Invesco Galaxy Solana ETF, will track the Lukka Prime Solana Reference Rate. This benchmark estimates Solana’s fair market value by analyzing SOL trade data across qualified platforms. The ETF will price its shares based on this reference rate as of 4:00 p.m. ET each day.
Invesco Capital Management LLC has filed a Form S-1 registration statement with the U.S. SEC to launch the Invesco Galaxy Solana ETF (ticker: QSOL). The fund is expected to list on the Cboe BZX Exchange and will seek to track the spot price performance of Solana (SOL), using the…
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Invesco Capital Management will sponsor the Solana ETF, while Galaxy Digital Funds will acquire the tokens on behalf of the fund. Coinbase Custody Trust Company will store the SOL, and Bank of New York Mellon will manage cash. CSC Delaware Trust Company will serve as trustee, overseeing legal responsibilities.
The ETF allows creations and redemptions in-kind and in cash, handled by authorized participants only. Creation orders involve delivering cash or SOL to the Trust’s accounts, which then issue shares. Redemptions follow the reverse, with SOL or cash sent out in exchange for QSOL shares.
Staking and Custody Add Yield Dimension to Fund Structure
The fund’s structure allows the sponsor to stake SOL using selected staking providers, including potential affiliates. Rewards from staking may increase the fund’s assets but will be treated as income and not affect NAV. Any forked or airdropped tokens will be excluded from valuation.
Staking introduces yield generation into the Solana ETF structure while keeping the Trust aligned with grantor trust rules. However, staking activities remain subject to evolving federal tax guidelines and regulatory interpretation. The Trust emphasizes it will not accept tokens from forks, maintaining valuation integrity.
SOL tokens will be held with Coinbase Custody, ensuring compliance with institutional-grade security and custody standards. BNY Mellon will manage all fiat transactions and serve as the fund’s transfer agent. These combined functions support operational reliability for the proposed QSOL ETF.
Competitive Race Builds Around Solana ETF Approvals
The QSOL filing joins proposals from VanEck, Bitwise, and 21Shares, all seeking to offer spot Solana ETFs. These filings follow SEC requests for updated S-1 forms, signaling progress in the ETF review process. The SEC’s stance shifted after court rulings forced approval of Bitcoin and Ethereum spot ETFs.
The ETF race began after expectations grew that the SEC, under political pressure, would adopt a more favorable stance. The Biden administration’s decisions mirrored that of its predecessor in broadening crypto access via regulated financial instruments. Market participants now anticipate similar treatment for altcoins like SOL.
The QSOL filing outlines a continuous share offering, with no preset limit on the number of shares sold. Shares may be sold by Invesco or a seed capital investor who acquired them as statutory underwriters. The fund’s structure and planned operations mirror those of the existing ETH and BTC ETFs.
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