Trillion-dollar asset manager Franklin Templeton has taken a step toward launching a Solana exchange-traded fund (ETF) by registering Franklin Solana Trust in Delaware.
This move places the global investment firm among a growing list of asset managers pursuing Solana-based investment products. The development comes on the heels of the U.S. SEC’s acknowledgment of multiple applications of Solana ETFs, signaling increased institutional interest.
Franklin Move to Join Solana ETF Race
The investment firm’s filing adds to a wave of interest from financial institutions exploring Solana ETFs. Franklin Templeton now aligns with other firms, such as Grayscale and Canary Capital, which have already initiated steps toward launching similar products.
If approved, the Franklin Solana Trust would seek to track Solana’s price movements. It would allow institutional investors to gain exposure to Solana through a regulated vehicle.
Long-term Enthusiasm For Solana ETF
In a statement from July 23, 2024, Franklin Templeton expressed optimism about the expansion of crypto ETFs. The firm highlighted Solana’s growing adoption and ongoing maturation.
Specifically, it noted Solana’s ability to overcome technological challenges while showcasing the benefits of high-throughput, monolithic blockchain architectures.
Franklin Templeton emphasized that, beyond Bitcoin and Ethereum, other key developments are driving the broader cryptocurrency market forward.
Solana ETFs Close to Approval
Notably, Franklin’s latest filing comes as the SEC acknowledged applications from asset managers Bitwise, VanEck, 21Shares, and Canary Capital on Tuesday. These firms submitted 19b-4 filings through the Cboe exchange, marking a critical step in the regulatory review process.
Meanwhile, the regulator’s acknowledgment does not imply approval but indicates readiness to assess the applications.
Furthermore, this news also follows the SEC’s decision to consider Grayscale’s amended 19b-4 application submitted through NYSE Arca.
A few months ago, the regulatory body had asked Cboe to withdraw VanEck’s Solana spot ETF application, citing classification concerns. The SEC views Solana as a security in certain contexts, raising regulatory challenges for asset managers seeking approval for Solana-based ETFs.
Solana Price Action
Solana (SOL) is trading at $196.46, reflecting a 3.13% drop over the past 24 hours. Over the past week, the cryptocurrency has declined by 3.55%, signaling continued market volatility.
Latest Cryptocurrency News – The Crypto Basic – Read More