Franklin Templeton has officially submitted an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on February 21, seeking approval for a Solana exchange-traded fund (ETF). The proposed ETF aims to track Solana’s price movements, allowing investors to gain exposure to the cryptocurrency without direct ownership. This filing follows the establishment of the Franklin Solana Trust in Delaware, a crucial step toward launching the ETF.
⚡️ JUST IN: 🇺🇸 Franklin Templeton has filed an S-1 for its Spot $SOL ETF. pic.twitter.com/CWCrJeGSFw
— Mayank Dudeja (@imcryptofreak) February 22, 2025
Growing Institutional Interest in Solana ETFs
Franklin Templeton joins a growing list of financial institutions—including Grayscale, Bitwise, Canary Capital, 21Shares, and VanEck—vying for SEC approval to launch Solana-focused ETFs. If approved, the Franklin Solana ETF will be listed on the Cboe BZX Exchange. Additionally, Coinbase Custody Trust Company, LLC, will serve as the custodian, ensuring secure storage of Solana holdings.
Staking: A Key Factor in SEC’s Decision
One distinctive feature of Franklin Templeton’s ETF proposal is its inclusion of staking, a process that generates Solana rewards. Staking could make the ETF more appealing to both institutional and retail investors by offering an additional revenue stream. However, its classification remains a contentious issue under current SEC regulations.
Other asset managers have also pushed for staking in ETF filings. The New York Stock Exchange has sought SEC approval for staking in Grayscale’s Ethereum ETFs, while Cboe BZX Exchange has filed a similar request for 21Shares’ Ethereum ETF. Previously, staking provisions were removed from Ethereum ETF applications to improve approval chances. The SEC’s decision on the Solana ETF could set a precedent for future crypto investment products.
Regulatory Scrutiny on Crypto Staking Intensifies
The SEC has ramped up its investigation into crypto staking, with its Crypto Task Force recently engaging with Jito Labs and Multicoin Capital Management to assess staking models and their potential impact. A shift in regulatory leadership has fueled optimism among asset managers, with analysts estimating a 70% chance of Solana ETF approval this year. However, uncertainty lingers as the SEC’s stance on staking remains under review, making the timing of any approval uncertain.
Also Read: Solana (SOL) Price Struggles: Can It Break Resistance and Reclaim $200?
If approved, the Franklin Solana ETF could mark a significant milestone in institutional adoption of Solana and pave the way for broader crypto-based investment vehicles.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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