- Franklin Templeton filed for a Solana ETF to give investors access without buying the cryptocurrency.
- The SEC is reviewing multiple Solana ETF applications and approval chances are estimated at 70 percent this year.
- The proposed ETF includes staking to attract investors who seek potential returns beyond asset appreciation.
Franklin Templeton has submitted an S-1 registration statement with the U.S. Securities and Exchange Commission on February 21 to introduce a Solana exchange-traded fund. The proposed fund seeks to monitor Solana’s price activity while allowing investors to maintain crypto exposure but without actual ownership. This development follows the establishment of the Franklin Solana Trust in Delaware which was a necessary step for launching the ETF.
Multiple financial institutions including Franklin Templeton, Grayscale, Bitwise, Canary Capital, 21Shares, and VanEck have filed applications with the SEC to seek approval for Solana-focused ETFs. The Franklin Solana ETF will be listed on the Cboe BZX Exchange if it is approved. Coinbase Custody Trust Company, LLC, will serve as the custodian and will also ensure secure storage of Solana holdings.
Staking Could Influence Regulatory Decisions
Franklin Templeton’s ETF proposal includes staking, a process that generates Solana rewards. This feature could make the fund attractive to both institutional and retail investors. Staking provides an additional revenue stream, but its classification remains uncertain under existing SEC guidelines.
Other firms have pursued similar strategies. The New York Stock Exchange has requested SEC approval for staking in Grayscale’s Ethereum ETFs. Cboe BZX Exchange has submitted a similar request for 21Shares’ Ethereum ETF. Previously, asset managers removed staking from their filings to gain SEC approval for Ethereum ETFs. The outcome of the Solana ETF could impact future crypto investment products.
SEC’s Stance on Crypto Staking Under Review
The SEC has intensified its focus on crypto staking. Reports indicate the agency is gathering data on various staking models and their impact. Last week, the SEC’s Crypto Task Force held discussions with Jito Labs and Multicoin Capital Management on staking-related topics.
With a shift in regulatory leadership, asset managers are optimistic about the approval of new cryptocurrency products. Analysts estimate a 70% chance of Solana ETF approval this year. However, regulatory uncertainty remains and the timing of a decision is unclear.
