U.S. regulators are making some serious moves in the crypto ETF world. On Wednesday, they added separate filings for a proposed Solana exchange-traded fund (ETF) and a potential rule change that could allow the Pudgy Penguins token-based investment product to hit the market. Yep, you read that right, Pudgy Penguins, the adorable little crypto that’s making waves.
First, let’s talk about the Invesco Galaxy Solana ETF. This one’s joining a growing list of funds (eight, to be exact) looking to track the performance of Solana, which is the sixth-largest crypto by market cap. Solana, by the way, is one of those altcoins that’s holding steady, despite a recent downturn, down 18% in the past month, but still a top choice for many developers.
The Growing Altcoin ETF Space and Its Future
And then there’s the Canary PENGU ETF, which could trade on Cboe’s exchange if approved. Just when you thought crypto couldn’t get any more interesting, here comes an ETF for Pudgy Penguins, talk about niche appeal!
What’s really heating up the crypto ETF space is the success of spot Bitcoin and Ethereum ETFs. Over the past 18 months, these two have racked up $47 billion and $4 billion in net investments, respectively. Naturally, the SEC is now giving altcoin ETFs a second look, and the stakes are higher than ever.
If you’re thinking about betting on Solana, XRP, or Litecoin spot ETFs, analysts say you’ve got about a 95% chance of seeing them approved by the end of 2025. Other altcoins like Dogecoin, Cardano, Polkadot, and Hedera are also looking good with a 90% approval chance by year-end. These were considered long shots not too long ago, but with Bitcoin and Ethereum proving the model, these altcoins are catching up.
And just to make things even juicier, earlier this month, seven Solana fund issuers clarified their language with the SEC about staking. They’re now looking to include staking in their ETFs, where you pledge tokens to a decentralized network in exchange for rewards. But don't expect smooth sailing, staking has been a controversial topic, especially after the SEC delayed decisions about staking for Ethereum ETFs.
As for the Solana ETF, it will trade under the QSOL ticker, with Galaxy Digital Funds executing trades on behalf of the fund, and Coinbase handling custody. Meanwhile, the Pudgy Penguin fund, filed by Canary Capital back in March, is just one of several altcoin ETFs that could change the game.
Despite Solana’s recent dip, it remains a blockchain darling, and while PENGU’s performance has been a little less stellar, the growing interest in altcoins can’t be ignored. The crypto ETF race is on, and with more to come, it's anyone’s guess who’ll come out on top!
Anastasiia G
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