Franklin Templeton, managing $1.53 trillion in assets, has filed an application with the U.S. SEC to launch an ETF tracking Solana (SOL). This move comes as Solana gains popularity due to its high-speed blockchain technology and widespread use of decentralized apps.
A Regulated Path for Solana Exposure
The proposed Franklin Solana ETF would trade on the Cboe BZX Exchange and directly hold Solana, providing exposure to its price changes. Coinbase Custody Trust Company, LLC would act as custodian of the digital assets. The ETF will not be registered under the Investment Company Act of 1940 nor operate as a commodity pool under the Commodity Exchange Act. Franklin Templeton believes the Solana market is resistant to manipulation due to its decentralized nature and 24/7 trading capabilities.
Transparency and Investor Protection
A key selling point of the Franklin Solana ETF is its transparency. The fund’s NAV will be calculated daily, and intraday indicative values disseminated every 15 seconds during trading hours, enabling informed decision-making throughout the day.
The Growing ETF Landscape
The application by Franklin Templeton is among many in the crypto ETF space. Firms like Grayscale Investments, VanEck, and 21Shares are also filing for ETFs tracking various digital assets, including XRP, Litecoin, and Dogecoin. Although the SEC has approved ETFs based on Bitcoin and Ether, the approval of Solana ETFs is still debated. The SEC plans to make a decision on the Franklin Solana ETF by October 2025.
The launch of a Solana-based ETF could be a significant step in integrating cryptocurrency into traditional financial markets. The surge in crypto ETF activities reflects growing institutional interest and potential future developments in these instruments.
