Franklin Templeton has initiated efforts to introduce a spot Solana exchange-traded fund (ETF) in the United States, following the registration of a trust in Delaware. This move marks a significant step towards launching Solana-based investment products, aiming to capitalize on the expanding market.
On February 10, 2025, Franklin Templeton established the Franklin Solana Trust through the CSC Delaware Trust Company, known for registering crypto trust products for firms like Bitwise, according to filings with Delaware’s corporate registry.
To officially launch the Solana ETF, Franklin Templeton must submit a Form 19b-4 and a Form S-1 to the U.S. Securities and Exchange Commission (SEC). Historically, firms that registered crypto trusts in Delaware subsequently filed with the SEC soon after.
The Franklin Solana Trust intends to track Solana’s price, similar to existing spot Bitcoin and Ether ETFs, if approved. Solana, currently holding the fifth-largest crypto market capitalization at approximately $97 billion, presents an attractive investment opportunity. Franklin Templeton's pursuit of a Solana ETF positions it against competitors like Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, all of which have also filed for spot Solana ETFs.
While the specific exchange for listing remains unspecified, Franklin Templeton’s existing Bitcoin and Ether ETFs are traded on the Cboe BZX Exchange. The firm has expressed strong confidence in Solana's capabilities, emphasizing its high transaction throughput and resilience in addressing technical challenges. Franklin Templeton has previously highlighted Solana’s progress as a monolithic blockchain and noted its expanding DeFi ecosystem and memecoin activity.
According to Bloomberg ETF analysts James Seyffart and Eric Balchunas, there is a 70% likelihood that a spot Solana ETF will gain approval by the end of 2025. The analysts indicated that Donald Trump’s election victory has positively influenced these odds. However, Seyffart has previously indicated that the SEC first needs to classify Solana as either a security or a commodity, as different regulations apply to commodity-based spot ETFs.
Recently, the SEC recognized the Form 19b-4 submissions for spot Solana ETFs from 21Shares, Bitwise, Canary Capital, and VanEck. Grayscale's application was acknowledged on February 6, a noteworthy development given former Chair Gary Gensler's frequent rejections.
JPMorgan analysts anticipate that an approved spot Solana ETF could garner between $3 billion and $6 billion in net assets within its first year, an estimation considered reasonable by Balchunas. As of now, Solana's trading price is $198.5, showing a 1.5% decrease over the past 24 hours.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.