Major investment firm Franklin Templeton has applied with the SEC to launch an ETF tracking the price of Solana.
A Regulated Path for Solana Exposure
The proposed Franklin Solana ETF would trade on the Cboe BZX Exchange, holding Solana directly to give investors exposure to the cryptocurrency's price fluctuations. Coinbase Custody Trust Company, LLC is set to be the digital assets custodian. The ETF will not be registered under the Investment Company Act of 1940 nor will it operate as a commodity pool. This regulatory strategy underscores Franklin Templeton's belief in the Solana market's resistance to manipulation.
Transparency and Investor Protection
The ETF aims to provide investors with a transparent method of accessing Solana, with daily calculation of net asset value and intraday indicative values disseminated every 15 seconds. This enables investors to make informed decisions throughout the trading day, mitigating risks typically associated with the direct custody of digital assets.
The Growing ETF Landscape and Regulatory Challenges
Franklin Templeton's filing is part of a broader trend of rising institutional investor interest in crypto ETFs, including filings by Grayscale Investments and others. The SEC has historically resisted approving altcoin-based ETFs, but analysts are optimistic about potential approval. Regulatory delays are generally considered a normal part of the approval process.
Franklin Templeton's filing for the Franklin Solana ETF reflects the growing institutional investor interest in cryptocurrencies. The proposal could simplify access to Solana for a wider range of investors through the familiar ETF structure.
