Franklin Templeton, managing $1.53 trillion in assets, has filed for the launch of the Franklin Solana ETF, which aims to track the price of the Solana (SOL) cryptocurrency. This proposal highlights the growing interest in Solana, driven by its high-speed blockchain and popular dApps.
A Regulated Path for Solana
The proposed Franklin Solana ETF will trade on the Cboe BZX Exchange, providing exposure to Solana's price changes. The digital assets will be securely stored with Coinbase Custody Trust Company, LLC. Not registered under the Investment Company Act of 1940, the ETF reflects Franklin Templeton's confidence in the Solana market's resistance to manipulation.
Transparency and Investor Protection
A significant selling point of the Franklin Solana ETF is its transparency: the net asset value is calculated daily, and intraday values are posted every 15 seconds. Franklin Templeton emphasizes that the ETF offers U.S. investors a regulated and transparent method for gaining exposure to Solana, mitigating risks associated with the direct custody of digital assets.
The Growing ETF Landscape
Franklin Templeton's filing aligns with the broader trend of increasing crypto ETF applications. Filings by firms like Grayscale Investments and VanEck demonstrate a high interest in creating similar exchange-traded products for other cryptocurrencies.
Franklin Templeton's application for a Solana ETF underscores the company's aim to broaden its investment product offerings in the crypto sector, responding to the growing institutional demand for altcoin exposure.
