Franklin Templeton, managing $1.53 trillion in assets, filed an application with the SEC to launch an ETF tracking Solana's price.
A Regulated Path for Solana Exposure
The proposed Franklin Solana ETF would trade on the Cboe BZX Exchange. It will hold Solana (SOL) directly, allowing investors to track the cryptocurrency's price fluctuations. Coinbase Custody Trust Company, LLC would act as the custodian for the digital assets. The ETF would not be registered under the Investment Company Act of 1940 nor operate as a commodity pool. Franklin Templeton believes that the Solana market is resistant to manipulation due to its decentralized nature and continuous trading environment.
Transparency and Investor Protection
A key feature of the Franklin Solana ETF is its transparency: the fund’s net asset value (NAV) will be calculated daily, with intraday indicative values disseminated every 15 seconds. This transparency enables investors to make informed decisions throughout the trading day. Franklin Templeton emphasizes that the ETF will offer U.S. investors a regulated and transparent method to gain exposure to Solana, reducing the risks associated with direct custody of digital assets.
The Growing ETF Landscape
Franklin Templeton's filing accompanies a broader trend of increasing crypto ETF applications. Financial giants like Grayscale Investments and VanEck have also submitted applications for ETFs tracking various digital assets. The SEC announced delays in decision-making for several altcoin ETFs, including Solana, citing the need for additional time to evaluate proposals.
Franklin Templeton aims to integrate Solana into traditional financial systems, simplifying access for investors through familiar investment products.
