U.S. regulators just added separate filings to their list, including a proposed Solana ETF and a request to change the rules to list an investment product related to Pudgy Penguins tokens. These are the latest moves in the increasingly vibrant cryptocurrency ETF market.
Solana and Pudgy Penguins ETF
Invesco Galaxy's Solana ETF joins a list of 8 other funds expected to track the performance of Solana, the sixth largest cryptocurrency by market capitalization. Meanwhile, the Cboe's 19b-4 request will allow the Canary PENGU ETF to trade on the exchange.
These filings mark the latest development in the increasingly heated cryptocurrency ETF space, especially following the resounding success of spot Bitcoin and Ethereum funds in the past 18 months. The SEC is currently considering over two dozen ETF applications based on altcoins, including Solana, $XRP , Dogecoin, $ADA , Polkadot, and Hedera.
The issue of staking and approval prospects
Earlier this month, seven Solana fund issuers submitted amended S-1 forms to the SEC, clarifying the language that allows them to stake the Solana they hold. Including staking in ETF funds is a contentious point among federal regulators, who have previously delayed decisions on staking in Ethereum ETFs due to concerns over financial and security risks.
Bloomberg analysts estimate that the spot ETFs for Solana, XRP, and Litecoin have a likelihood of being approved by the U.S. SEC of up to 95% by the end of 2025. The spot ETF applications for Dogecoin, Cardano, Polkadot, Hedera, and Avalanche have a 90% chance of being approved by the end of the year. The success of the ETFs $BTC and ETH, with respective net investments of $47 billion and $4 billion, has paved the way for these altcoin funds.
Invesco Galaxy's Solana ETF will trade under the code QSOL. Galaxy Digital Funds will act as the fund's execution agent, buying and selling SOL on behalf of the fund. Coinbase will be the fund's custodian.