- Franklin Templeton wants to launch a spot Solana ETF and has filed for SEC approval.
- If approved, the ETF will track Solana’s price and be listed on the Cboe BZX Exchange.
- Investors watch closely as Solana’s price drops and hopes rise for crypto ETF approvals.
Franklin Templeton has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) to launch a spot Solana exchange-traded fund. The ETF seeks to track Solana’s spot price, offering investors exposure to the cryptocurrency without direct ownership. If approved, it will be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company as Solana Holdings’ custodian.
Growing Interest in Solana ETFs
Franklin Templeton’s submission follows its launch establishment of a Delaware trust, signaling early preparations for a Solana ETF in the United States. The proposed ETF aims to mirror Solana’s price movements, allowing investors to access the digital asset without purchasing it directly.
Several enterprises, including Canary Capital, VanEck, Bitwise, Grayscale, and 21Shares, have also pursued Solana ETFs. Exchanges filing 19b-4 documents on behalf of these companies include NYSE ARCA, which submitted Grayscale’s proposal. Franklin Templeton and its competitors seek approval for listing on the Cboe BZX Exchange.
The SEC must approve both S-1 and 19b-4 forms before trading can commence. Franklin Templeton’s filing comes just one day after the launch of the EZPZ Bitcoin and Ethereum ETF on the Cboe BZX Exchange. This ETF comprises 82% Bitcoin and 18% Ethereum and tracks assets on CF Benchmarks’ Institutional Digital Index.
Regulatory Outlook and Market Implications
So far, the SEC has only approved spot ETFs for Bitcoin. The regulatory environment may shift as a bipartisan group of senators, including Ron Wyden (D-Ore.), Kirsten Gillibrand, and Cynthia Lummis, have urged the SEC to clarify its stance on digital asset staking within ETFs.
Shareholders are closely monitoring potential approvals of altcoin ETFs, particularly under Trump’s government. Some analysts speculate that Solana ETFs could gain traction during Trump’s second term, possibly boosting the value of the cryptocurrency. However, market participants debate whether these expectations have already been priced into Solana’s recent performance.
Related: SEC Officially Acknowledges 21Shares’ Spot Solana ETF Filing
Solana’s Price Volatility and ETF Landscape
The filing coincides with a challenging period for Solana, which has declined 16% over the past week and is trading around $168. Some analysts attribute the drop to its association with the Libra token and a slowdown in meme coin projects on the Solana network.
Franklin Templeton is already established in the Bitcoin ETF market. Its Bitcoin ETF ranks ninth among similar products, with $442 million in net inflows. Meanwhile, its Ethereum ETF holds $34 million in assets under management, ranking sixth in its category. With increasing institutional interest in cryptocurrency ETFs, will the SEC approve Franklin Templeton’s spot Solana ETF, potentially expanding investor access to digital assets?
