Franklin Templeton, a leading asset management firm, has officially registered the "Franklin Solana Trust" in Delaware. This move suggests that the company may soon file for a spot Solana exchange-traded fund (ETF), positioning itself among other key players aiming to launch similar crypto investment products.
What Does the Registration Mean?
The registration of the Franklin Solana Trust, filed on February 10 with the Delaware Division of Corporations, is a notable step toward the potential launch of a Solana ETF. The trust was registered by CSC Delaware Trust Company, a firm known for handling similar crypto-related filings for asset managers like Bitwise.
To officially enter the race for a Solana ETF, Franklin Templeton must submit two key forms to the U.S. Securities and Exchange Commission (SEC): Form 19b-4 and Form S-1. These filings would initiate the regulatory review process necessary for ETF approval.
Franklin Templeton’s move follows a growing trend of financial institutions exploring Solana-based investment products. Other firms, including Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, have already filed for spot Solana ETFs. The SEC recently acknowledged the 19b-4 filings from multiple issuers, indicating that the regulator is taking these applications into consideration.
If approved, the Franklin Solana Trust would aim to track Solana’s price movements, providing institutional and retail investors with an opportunity to gain exposure to the asset without direct ownership. Solana, currently the fifth-largest cryptocurrency with a market cap of $97 billion, has been gaining traction due to its high-speed transactions and growing decentralized finance (DeFi) ecosystem.
SEC’s Stance on Solana ETFs
The SEC’s approach to crypto ETFs has evolved significantly. Initially hesitant to approve crypto investment vehicles beyond Bitcoin and Ethereum, the agency is now showing a willingness to consider Solana-based products. Bloomberg analysts James Seyffart and Eric Balchunas estimate a 70% chance of a spot Solana ETF being approved before the end of 2025.
NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We're putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.
— James Seyffart (@JSeyff) February 10, 2025
Here's the table with the odds and some other details: pic.twitter.com/xaXaNXLb0M
However, a key regulatory hurdle remains: the classification of Solana as a security or a commodity. The SEC must resolve this issue before evaluating Solana ETFs under the same framework as Bitcoin and Ethereum products.
Approval of a spot Solana ETF could have a significant impact on the crypto investment landscape. JPMorgan estimates that a Solana ETF could attract between $3 billion and $6 billion in net assets within its first year. Analysts believe that such an ETF would reinforce Solana’s position as a mainstream blockchain platform, paving the way for further institutional adoption.
With increasing interest in Solana ETFs and the SEC’s apparent shift in stance, the crypto market is watching closely. If Franklin Templeton proceeds with its filings, it will join a growing list of asset managers betting on Solana’s long-term viability. While regulatory uncertainties remain, the momentum behind crypto ETFs suggests that Solana could soon become a significant player in the institutional investment space.
Emmanuel Ekokotu
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