Franklin Templeton has made a significant move towards a solo ETF by registering the Franklin Solana Trust in Delaware, joining the race with other asset managers.
Franklin Templeton's Solana ETF Plans
Franklin Templeton has set its sights on Solana, the fifth-largest crypto asset. The company registered the Franklin Solana Trust in Delaware, following the lead of players like Grayscale, Bitwise, and VanEck, who are also working on launching Solana ETFs.
Steps Forward
To move forward, Franklin Templeton must file key documents with the SEC: Form 19b-4 and Form S-1. These filings are standard for ETF proposals and specify the fund's structure and operational details. Though the filing did not specify the exchange, it is likely the ETF will be listed on Cboe BZX, just like their other ETFs.
Challenges and Forecasts
The main hurdle remains the classification of Solana as a security or a commodity. This will affect how the SEC evaluates the proposal. Bloomberg analysts project a 70% chance of the ETF being approved by the end of 2025, considering changes after the 2024 elections. However, the key determinant will be the shifting attitudes at the SEC towards Solana ETF applications.
Conclusion. With Franklin Templeton entering the race for a Solana ETF, the market becomes more exciting and competitive, and all stakeholders closely follow the development with great interest.
