Franklin Templeton advances its battle for Solana exchange-traded funds (ETFs) through its recent document submission in Delaware.
The Franklin Solana Trust entity became officially registered by the firm to launch its spot Solana ETF.
The Securities and Exchange Commission (SEC) recently confirmed Canary Capital’s Solana ETF proposal after financial institutions demonstrated a growing interest in SOL ETF.
Franklin Templeton Advances Solana ETF Plans
Franklin Templeton has taken a major step by registering the Franklin Solana Trust entity in Delaware.
The asset manager demonstrates its dedication to building up its crypto offerings because institutions increasingly show interest in these products.
ICR Solutions shows that Templeton Franklin participates with the other firms seeking SEC approval for spot Solana ETFs along with Grayscale and Canary Capital.
The investment firm had already filed an amended S-1 filing to the SEC for establishing its Franklin Templeton Crypto Index ETF.
When launched, this fund will start by tracking Bitcoin and Ethereum ETFs while the prospect of upcoming altcoin inclusion exists.
The need for SEC approval on identical exchange-traded products for each asset limits the ability of Franklin Templeton to incorporate new cryptocurrencies.
Through its recent investment move, Franklin Templeton demonstrates its plan to profit from expanding interest in financial products built on the Solana network.
The firm joining the race contributes additional drive to continued developments in Solana ETF technology.
Regulatory bodies make the last decision about allowing altcoin-based ETFs to exist, even though they persistently review these crypto-asset risks.
SEC Considers Multiple Solana ETF Applications
The SEC is reviewing several applications for Solana ETFs as firms seek regulatory approval.
In June 2024 VanEck became the first company to file for a Solana ETF, which led other businesses to express interest in new products.
Four additional firms submitted their applications for Solana ETFs to the SEC after VanEck first filed in June 2024.
The SEC verified Grayscale’s application to list its Solana Trust through NYSE Arca last month.
A public comment period of 21 days was activated when the $102.8 million Solana-based fund received this regulatory decision.
The Security and Exchange Commission needs to decide on accepting the application entirely or to prolong the evaluation period, or outright reject it.
Canary Capital obtained SEC approval for its SEC filing, which augurs well for a potential approval of a Solana-based ETF.
The regulatory body considers Solana as an unregistered security, but this classification threatens its possibility of approval.
According to Bloomberg analysts, the SEC will initially approve ETFs for Litecoin and Hedera since both projects are currently being prioritized over Solana.
Growing Institutional Demand
Solana ETF applications are rapidly increasing, which demonstrates institutions actively seeking exposure to the cryptocurrency.
Firms take strategic positions for future market advantage despite regulatory situations being unclear.
The Solana cryptocurrency shows long-term promise because Franklin Templeton has entered the competition in response to market sentiment.
Many industry experts agree that regulatory approval stands as the major impediment to the launch of these ETFs.
Altcoin ETF applications may face protracted review processes from the SEC because the regulator demonstrates restraint towards these investment funds.
Companies maintain their efforts to ready themselves for possible SEC authorization of a Solana ETF.
