Franklin Templeton, a global asset manager overseeing $1.68 trillion in assets, filed a registration for the Franklin Solana Trust in Delaware on Monday, signaling its potential entry into the Solana spot ETF market.
The filing follows similar applications from Canary Capital and Grayscale, both of which have already been acknowledged by the U.S. Securities and Exchange Commission (SEC).
Franklin Templeton Joins Solana Spot ETF Race Amid Growing Institutional Interest
If approved, Franklin Templeton’s Solana ETF would provide institutional investors with regulated exposure to Solana (SOL), a blockchain known for its high-throughput capabilities.
On July 23, 2024, Franklin Templeton publicly expressed interest in Solana, highlighting its increasing adoption and technological advancements.
The firm wrote in a post on X: “Besides Bitcoin and Ethereum, there are other exciting and major developments that we believe will drive the crypto space forward.”
The firm added: “Solana has shown major adoption and continues to mature, overcoming technological growing pains and highlighting the potential of high-throughput, monolithic architectures.”
The SEC recently acknowledged Canary Capital’s Solana ETF application, triggering a 21-day review period before an initial decision or a deadline extension.
This comes after the regulator also acknowledged Grayscale’s Solana ETF filing earlier this month.
Franklin Templeton’s move aligns with a broader industry push to capitalize on growing institutional interest in crypto, particularly following Donald Trump’s victory in the 2024 U.S. presidential elections.
VanEck was the first to propose a Solana ETF in June 2024, prompting a series of filings from major asset managers.
SEC’s Changing Stance: What’s Next for Crypto ETFs?
The SEC long resisted Bitcoin ETF approvals due to investor protection concerns. However, in January 2024, it approved the first Bitcoin spot ETFs, later extending this to Ether ETFs, expanding institutional and retail access.
Since then, firms have been racing to launch ETFs tied to other cryptocurrencies, including Solana and XRP.
Last month, Bitwise secured initial approval for a hybrid Bitcoin-Ether ETF, with the SEC granting accelerated approval for trading on NYSE Arca.
Meanwhile, Franklin Templeton is advancing its crypto ETF offerings, including one designed to track Bitcoin and Ether spot prices on the Cboe BZX Exchange.
Its latest filing, submitted on February 6, 2025, clarifies the fund’s structure, with Bitcoin comprising 86.31% of the index and Ether 13.69%.
Coinbase Custody will safeguard digital assets, while BNY Mellon will manage cash holdings.
Regulatory approval for Franklin Templeton’s ETF remains pending, with its application under SEC review since September 2024.
The agency has extended its decision timeline multiple times, most recently in December 2024, and trading can only begin once the review process is complete.
Bloomberg ETF analysts James Seyffart and Eric Balchunas estimate increasing chances of SEC approval for crypto ETFs beyond Bitcoin and Ether.
They project a 90% likelihood for Litecoin ETFs, 75% for Dogecoin, 70% for Solana, and 65% for XRP.
Industry observers expect the SEC to issue final decisions on the first Solana ETF applications by mid-March 2025, shaping the future of Solana-based investment products.
The SEC’s upcoming decision on the Solana spot ETF reflects the evolving relationship between traditional finance and digital assets.
Franklin Templeton’s entry into the race highlights the growing push for institutional crypto investment, but long-term success will depend on regulatory clarity and Solana’s continued adoption.
As asset managers adjust to these changes, investors must consider how these developments could influence portfolio strategies and risk management in a regulated framework.
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