Thomas Daniels
The $1.5 trillion asset management company Franklin Templeton has formally entered the competition to introduce a Solana spot exchange-traded fund (ETF). The company announced its intention to launch a Solana-focused exchange-traded fund (ETF) in the U.S. market on February 11 by submitting registration documents for the Franklin Solana Trust in Delaware. With this action, Franklin Templeton joins a number of other financial behemoths that are vying for regulatory permission for comparable products, including as Grayscale, 21Shares, VanEck, Bitwise, and Canary.
Franklin Templeton may soon file a formal spot ETF application in Delaware, following the same regulatory process as other issuers, according to the filing process. The company’s interest in Solana is not new; in July 2024, Franklin Templeton gave a bullish assessment of the blockchain network, pointing to its potential to propel the mainstream adoption of cryptocurrencies alongside Ethereum and Bitcoin.
One of the main reasons for Solana’s increasing legitimacy as a good investment vehicle is its ability to bounce back from past technological setbacks. The U.S. Securities and Exchange Commission (SEC) is now assessing new cryptocurrency investment products. The SEC has acknowledged Form 19b-4 petitions for both Litecoin and Solana and is currently reviewing other altcoin ETFs after approving spot Bitcoin and Ethereum ETFs in 2024.
The market has already been impacted by the regulatory movement. According to Bloomberg analysts James Seyffart and Eric Balchunas, there is a 90% chance that the SEC would approve a Litecoin ETF, which would cause the price of LTC to soar. A comparable result for Solana would strengthen its place in the growing cryptocurrency investing market.
