On February 21, 2025, Franklin Templeton, a leading global asset management firm, submitted a filing to the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that tracks Solana, the sixth-largest cryptocurrency by market capitalisation. The proposed Franklin Solana ETF would be designed to follow the price movements of Solana, with the fund’s assets held by a custodian. Shares of the ETF would be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company, LLC serving as the custodian.
This move by Franklin Templeton is part of a broader trend, with several other asset management firms such as Grayscale, Bitwise, VanEck, 21Shares, and Canary also seeking approval for Solana-based ETFs. The SEC’s decision on these filings remains uncertain, with some analysts, including Bloomberg’s Senior ETF Analyst Eric Balchunas, estimating a 70% chance of approval for Solana ETFs in 2025. However, Balchunas emphasized that the SEC’s review process and the public comment period would significantly influence the final outcome.
The proposed Franklin Solana ETF would also participate in staking activities, earning Solana tokens as rewards. These staking rewards would be classified as income for the fund, which could create additional complications for the SEC’s review process. Staking has become a focal point for crypto firms, with prominent exchanges like the New York Stock Exchange and Cboe BZX pushing for approval to include staking in crypto ETFs, similar to the approval sought for Grayscale’s Ethereum fund.
Recently, Solana has faced some price pressure, trading around $168, which represents a decline of over 16% in just the past week. The drop has been attributed to a controversy involving the Libra token and a slowdown in meme coin projects. Despite this decline, demand for crypto-related investment products remains strong, bolstered by the success of Bitcoin ETFs, which have seen more than $40 billion in net inflows over the past year.
The filing for the Solana ETF follows a similar initiative earlier in 2025 when Franklin Templeton launched the Templeton Crypto Index ETF, which provides exposure to Bitcoin and Ethereum. If the Solana ETF is approved, it would further expand Franklin Templeton’s offerings in the digital asset space, highlighting the firm’s increasing focus on crypto-based products in the U.S. market.
This growing interest in crypto-focused financial products reflects a shift toward diversification in digital asset investments. Experts suggest that the approval of Solana ETFs could significantly increase access to cryptocurrency investments, catering to both institutional and retail investors alike. As the regulatory landscape for cryptocurrencies continues to evolve, many are optimistic about the potential for Solana ETFs to gain approval and provide a broader range of investment options.
