Franklin Templeton, managing $1.53 trillion in assets, filed an application with the SEC to launch an ETF tracking Solana's price. This move highlights growing interest in this blockchain and its decentralized applications.
A Regulated Path for Solana
The proposed Franklin Solana ETF would trade on the Cboe BZX Exchange, known for its focus on traditional and digital assets. Solana would be held directly, providing investors exposure to its price fluctuations, with Coinbase Custody Trust Company, LLC as the custodian. The ETF will not be registered under the Investment Company Act of 1940, reflecting belief in Solana market's resistance to manipulation due to its decentralized nature.
Transparency and Investor Protection
The Franklin Solana ETF offers a transparent and regulated approach for U.S. investors to access Solana. The fund’s net asset value (NAV) will be calculated daily, and intraday indicative values will be disseminated every 15 seconds, aiding informed investment decisions.
The Growing ETF Landscape
Franklin Templeton’s submission aligns with the rising number of crypto ETF filings. Companies like Grayscale and VanEck have also filed for ETFs covering various cryptocurrencies. Despite SEC's historical resistance, analysts remain optimistic about the approval of such ETFs.
Franklin Templeton's filing for a Solana ETF signals growing institutional interest in altcoins and reflects the trend toward integrating cryptocurrencies into traditional financial markets.
