Franklin Templeton Joins Solana ETF Race as Institutional Demand Grows

In a surprising move, Franklin Templeton has entered the Solana ETF race, filing documents in Delaware to launch the Franklin Solana Trust. This marks the firm’s first step toward introducing a spot Solana ETF.

This announcement follows the SEC's acknowledgment of Canary Capital’s Solana ETF application, as several investment firms, including Grayscale and Canary Capital, push to launch altcoin ETFs. The community is eagerly awaiting the SEC's next move.

Franklin Templeton has registered the Franklin Solana Trust entity in Delaware, signaling the increasing institutional demand for Solana. Crypto analyst FOMO HUNTER remarked that while the filings are gaining momentum, regulatory approval is just the beginning.

Additionally, Franklin Templeton recently filed an amended S-1 to the SEC for approval of its Crypto Index ETF, which initially tracks Bitcoin and Ethereum ETFs but may eventually include other cryptocurrencies, contingent on SEC approval.

The Solana ETF race has heated up since VanEck's initial filing in June 2024, with Grayscale, Canary Capital, Bitwise, and 21Shares following suit. The SEC has opened a public comment period for Grayscale’s $102.8 million Solana Trust, and analysts suggest that the SEC might approve ETFs for Litecoin and Hedera before Solana and XRP due to Solana’s unregistered security status.

Boasting a market cap of $95.94 billion, Solana is ranked 5^th on CoinMarketCap. Despite growing institutional interest, Solana's price has been on a decline, currently trading at $196.57. The token has dropped by 9.99% over the past week, while its trading volume is down by 14.03%, currently at $3.81 billion.