Franklin Templeton, one of the world’s largest asset management firms, has submitted a proposal to the United States Securities and Exchange Commission (SEC) to issue a spot Solana ETF (exchange-traded fund). This move positions the asset manager alongside several other applicants vying to introduce a SOL-based investment product for U.S. investors.
Franklin Templeton To Offer Staking In Spot Solana ETF
On Friday, February 21, Franklin Templeton filed for an exchange-traded product designed to track the spot price of the fifth-largest cryptocurrency, Solana. The proposed Solana ETF will be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company, LLC acting as custodian.
The registration statement from the firm elaborated:
The Franklin Solana Trust (the “Trust”) is organized as a Delaware statutory trust. The Franklin Solana ETF series of the Trust (the “Fund”) issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Fund consist primarily of Solana held by a custodian on behalf of the Fund. The Fund seeks to reflect generally the performance of the price of Solana before payment of the Fund’s expenses.
Additionally, Franklin Templeton disclosed that it may occasionally stake a portion of the ETF’s assets through one or more trusted staking providers. Staking is anticipated to yield rewards in the form of Solana tokens, which will be treated as income for the Fund.
This proposed spot Solana ETF would complement Franklin Templeton’s growing suite of cryptocurrency products in the United States, following the recent launch of its combined ETH and BTC ETF, approved by the SEC in December 2024.
The introduction of staking into the spot Solana ETF isn’t without precedent; various issuers have considered this feature for their crypto products. For instance, the New York Stock Exchange has filed for staking on Grayscale’s Ethereum ETFs, and Cboe BZX Exchange is exploring staking options for 21Shares’ Ethereum fund.
As the regulatory landscape for digital assets continues to improve in the U.S., the influx of proposals from traditional firms for new crypto-based financial products is hardly surprising. This trend was recently underscored by the SEC’s decision to drop its case against Coinbase.
Solana Price Overview
In response to Franklin Templeton’s spot Solana ETF filing, the price of SOL showed minimal fluctuation. At the time of this writing, Solana trades around $170, reflecting a 2% decline over the past 24 hours.
