On March 12, Franklin Templeton filed an application with the SEC to launch Franklin Solana ETF, a new fund tracking Solana's value on the Cboe BZX Exchange.
A Regulated Path for Solana Exposure
The Franklin Solana ETF will be traded on the Cboe BZX Exchange, allowing investors to track Solana's price. Coinbase Custody Trust Company, LLC will act as the custodian for the digital assets, ensuring the safety of Solana tokens. The ETF will not be registered under the Investment Company Act of 1940 nor operate as a commodity pool under the Commodity Exchange Act, reflecting Franklin Templeton's confidence in the Solana market's resistance to manipulation.
Transparency and Investor Protection
A key aspect of the Franklin Solana ETF is its transparency. The fund’s net asset value will be calculated daily, with intraday indicative values updated every 15 seconds, allowing investors to make informed decisions throughout the trading day. This approach reduces risks typically associated with directly holding digital assets.
The Growing ETF Landscape
The filed application aligns with a trend of growing ETF filings tied to cryptocurrencies. Companies like Grayscale Investments, VanEck, and 21Shares have filed for ETFs tracking digital assets such as XRP, Litecoin, and Dogecoin in recent months. Analysts remain confident in the strong chances of approval despite SEC delays in evaluating such proposals.
The launch of Franklin Solana ETF could be a pivotal step towards integrating cryptocurrencies into traditional financial systems, offering investors a regulated and transparent way to invest in Solana.
