Franklin Templeton, a worldwide asset supervisor overseeing $1.68 trillion in belongings, filed a registration for the Franklin Solana Belief in Delaware on Monday, signaling its potential entry into the Solana spot ETF market.
The submitting follows related functions from Canary Capital and Grayscale, each of which have already been acknowledged by the U.S. Securities and Trade Fee (SEC).
Franklin Templeton Joins Solana Spot ETF Race Amid Rising Institutional Curiosity
If authorized, Franklin Templeton’s Solana ETF would offer institutional traders with regulated publicity to Solana (SOL), a blockchain identified for its high-throughput capabilities.
BREAKING: Franklin Templeton, managing over $1.2 trillion in belongings, has filed a “FRANKLIN @SOLANA TRUST” in Delaware.
This alerts {that a} spot ETF submitting could also be coming, as this was the method adopted by Bitwise and different ETF filings. pic.twitter.com/9t9uUUg2Kv— SolanaFloor (@SolanaFloor) February 11, 2025
On July 23, 2024, Franklin Templeton publicly expressed curiosity in Solana, highlighting its rising adoption and technological developments.
The agency wrote in a submit on X: “Apart from Bitcoin and Ethereum, there are different thrilling and main developments that we consider will drive the crypto area ahead.”
The agency added: “Solana has proven main adoption and continues to mature, overcoming technological rising pains and highlighting the potential of high-throughput, monolithic architectures.”
The SEC just lately acknowledged Canary Capital’s Solana ETF utility, triggering a 21-day overview interval earlier than an preliminary resolution or a deadline extension.
This comes after the regulator additionally acknowledged Grayscale’s Solana ETF submitting earlier this month.
Franklin Templeton’s transfer aligns with a broader trade push to capitalize on rising institutional curiosity in crypto, notably following Donald Trump’s victory within the 2024 U.S. presidential elections.
VanEck was the primary to suggest a Solana ETF in June 2024, prompting a sequence of filings from main asset managers.
SEC’s Altering Stance: What’s Subsequent for Crypto ETFs?
The SEC lengthy resisted Bitcoin ETF approvals as a consequence of investor safety issues. Nonetheless, in January 2024, it authorized the primary Bitcoin spot ETFs, later extending this to Ether ETFs, increasing institutional and retail entry.
Since then, corporations have been racing to launch ETFs tied to different cryptocurrencies, together with Solana and XRP.
Final month, Bitwise secured preliminary approval for a hybrid Bitcoin-Ether ETF, with the SEC granting accelerated approval for buying and selling on NYSE Arca.
In the meantime, Franklin Templeton is advancing its crypto ETF choices, together with one designed to trace Bitcoin and Ether spot costs on the Cboe BZX Trade.
Its newest submitting, submitted on February 6, 2025, clarifies the fund’s construction, with Bitcoin comprising 86.31% of the index and Ether 13.69%.
Coinbase Custody will safeguard digital belongings, whereas BNY Mellon will handle money holdings.
Regulatory approval for Franklin Templeton’s ETF stays pending, with its utility beneath SEC overview since September 2024.
The company has prolonged its resolution timeline a number of instances, most just lately in December 2024, and buying and selling can solely start as soon as the overview course of is full.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate rising possibilities of SEC approval for crypto ETFs past Bitcoin and Ether.
NEW: @EricBalchunas and I took a take a look at the filings for spot crypto ETFs. We're placing out comparatively excessive odds of approval throughout the board. Primarily centered on Litecoin, Solana, XRP, and Dogecoin for now.
Right here's the desk with the chances and another particulars: pic.twitter.com/xaXaNXLb0M— James Seyffart (@JSeyff) February 10, 2025
They venture a 90% chance for Litecoin ETFs, 75% for Dogecoin, 70% for Solana, and 65% for XRP.
Business observers anticipate the SEC to situation ultimate selections on the primary Solana ETF functions by mid-March 2025, shaping the way forward for Solana-based funding merchandise.
The SEC’s upcoming resolution on the Solana spot ETF displays the evolving relationship between conventional finance and digital belongings.
Franklin Templeton’s entry into the race highlights the rising push for institutional crypto funding, however long-term success will rely on regulatory readability and Solana’s continued adoption.
As asset managers regulate to those adjustments, traders should contemplate how these developments may affect portfolio methods and threat administration in a regulated framework.
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