Solana ETF Battle: Invesco vs Grayscale, SEC Approval Soon?

The U.S. Securities and Exchange Commission (SEC) has extended its review period for the Grayscale Solana ETF, once again pushing the final decision back to October. 

At the same time, investment giants Invesco and Galaxy Digital have entered the race with a new Solana ETF proposal, increasing pressure on the regulator. 

As investors grow more confident about a potential approval, the stage is set for a highly anticipated battle between two major contenders in the crypto ETF space.

What’s Behind the SEC Delay and Grayscale’s ETF Status?

Grayscale first filed to convert its Solana Trust into an ETF earlier this year. After initial amendments and formal proceedings in May, the SEC now says it needs until 10 October to make a final decision. 

While delays are nothing new in the regulatory world, this one carries added weight due to growing political interest in crypto and a changing stance within the SEC itself.

The Truth Social Bitcoin ETF, which shares similar political ties, has also seen its deadline extended, highlighting the cautious approach regulators continue to take even amid growing institutional demand. 

Although recent months have seen the SEC gradually opening up to crypto-based ETFs, its process remains slow and layered with internal review procedures.

Under the Securities Exchange Act, the SEC has up to 180 days to decide on a proposed rule change, but it can extend this period to allow for further evaluation. 

In this case, the delay suggests the agency is being thorough rather than dismissive. Grayscale’s application, which seeks to offer investors exposure to spot SOL through a listed vehicle, faces the challenge of meeting a high standard for market surveillance, liquidity, and investor protection.

Despite the extension, investor optimism has not waned. In fact, market observers believe that the delay could indicate that approval is still on the table. The upcoming months will be crucial, as October draws closer and stakeholders prepare for a potential green light.

Read also: Solana Price Analysis: Can it Go Above $300?

Invesco Galaxy’s New Filing Poses Strong Competition

While Grayscale waits, Invesco and Galaxy Digital have filed their own joint proposal for a Solana ETF. Their fund would track the spot price of SOL and offer staking rewards, making it attractive for both passive and yield-seeking investors. 

This dual approach is becoming increasingly popular, especially after the recent launch of the REX–Osprey Sol + Staking ETF, which opened with a debut volume of $33 million.

The Invesco Galaxy proposal has been filed under the same rule used for previous digital asset-based funds, with plans to list on the Cboe BZX Exchange. 

The ETF would be structured as a commodity-based trust, similar to existing Bitcoin and Ethereum funds, but with added staking functionality. 

This gives the fund an edge in providing additional returns for investors who might otherwise hold SOL directly or through centralised platforms.

This new filing brings fresh momentum to the Solana ETF debate. The market now has a second serious contender, and the SEC will need to evaluate both under similar criteria. 

The timing is particularly interesting. With Grayscale’s deadline extended and Invesco Galaxy only just entering the process, there is a possibility that both proposals could be decided around the same period.

Polymarket data reflects strong confidence in a favourable outcome. According to recent figures, over 99% of participants believe that a Solana ETF will eventually receive approval. 

This overwhelming optimism is fuelled not only by market demand but also by the SEC’s updated guidance on crypto ETF disclosures. Many interpret this guidance as a signal of a friendlier regulatory environment, especially under the agency’s current Republican leadership.

Read also: Can Solana Reach $1000? Analyzing the Potential

Will a Solana ETF Finally Get Approved?

While both applications are under review, the question remains whether the SEC is ready to approve a Solana ETF. Past hesitation around spot-based crypto ETFs has largely centred on concerns about price manipulation, market surveillance, and investor protection. 

However, the recent approval of other staking-enabled ETFs suggests that regulators may be warming up to this type of product.

If either ETF is approved, it would mark a milestone for Solana’s institutional accessibility. Not only would it validate SOL as an investable asset within traditional markets, but it would also provide investors with regulated exposure that combines token holding with staking income. 

This combination could prove particularly appealing at a time when DeFi yields are under pressure and centralised lending platforms have become less reliable.

The presence of two high-profile filings may also accelerate the decision-making process. Regulators are now faced with competing proposals, both backed by reputable financial firms. 

The pressure to provide clarity and move forward is growing, and the October deadline could serve as a catalyst for a broader shift in the SEC’s treatment of crypto-based ETFs.

At the same time, it is worth noting that the SEC has rejected or delayed similar products in recent months. 

While the outlook appears positive, investors should remain cautious until official approval is granted. The regulator may still request additional data or impose conditions before either fund is allowed to launch.

Still, the entry of Invesco Galaxy into the scene has turned this into a competitive race. If both funds are ultimately approved, the outcome could set the tone for future altcoin ETFs beyond Bitcoin and Ethereum. 

The next few months will be key in determining whether Solana joins the shortlist of crypto assets with mainstream investment vehicles.

Read also: Solana (SOL) Price Outlook: July 2025 and Beyond

Conclusion

The battle between Grayscale and Invesco Galaxy for the first Solana ETF has captured the attention of both institutional and retail investors. With the SEC delaying its decision and new applications entering the fray, market anticipation is building. 

Approval could signal a major shift in how altcoins like SOL are accessed and traded. For those looking to position themselves ahead of this potential shift, Bitrue remains one of the easiest and safest platforms to trade crypto, offering a wide range of assets and user-friendly features.

Read also: Bitrue Earn Monday is Live Now

FAQ

What is a Solana ETF?

A Solana ETF is an investment product that allows investors to gain exposure to the price of Solana (SOL) without directly buying the token. It is traded on traditional stock exchanges.

Why did the SEC delay the Grayscale Solana ETF?

The SEC extended the review period to allow more time to evaluate the application. The agency often delays crypto ETF decisions to ensure regulatory standards are met.

What makes the Invesco Galaxy Solana ETF different?

The Invesco Galaxy proposal includes staking rewards, allowing investors to earn yield on their SOL exposure, in addition to tracking the asset’s price.

When will the SEC decide on these ETF proposals?

The Grayscale decision is expected by October 10, 2025. The Invesco Galaxy application is still early in the review process, and a decision date has not yet been set.

How can I invest in Solana now?

Until an ETF is approved, you can buy SOL directly on crypto platforms like Bitrue, which offers a secure and convenient way to trade Solana and other digital assets.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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