Franklin Templeton filed for an exchange-traded fund on Friday.
The fund will hold Solana as its primary asset, stored securely by Coinbase Custody Trust Company. It will also have a separate custodian for cash holdings.
The ETF’s shares, which represent fractional ownership of its Solana holdings, will be continuously issued and redeemed in large blocks known as Creation Units. These transactions will involve either Solana, cash, or a combination of both.
A key feature of the fund is its potential to stake a portion of its Solana holdings. By doing so, it can earn additional Solana tokens as staking rewards, which may be treated as income for the fund. However, the fund will not claim or hold assets received from blockchain forks or airdrops.
Shares of the Franklin Solana ETF will be listed on the Cboe BZX Exchange under a yet-to-be-announced ticker symbol. While the fund’s net asset value (NAV) is based on the Solana price, market prices for the shares may fluctuate depending on supply and demand.
Only institutional investors, known as Authorized Participants, will be able to directly buy or redeem Creation Units. However, retail investors can purchase shares through the exchange, similar to traditional stocks or ETFs.
Franklin Templeton’s move follows the broader trend of crypto ETFs gaining traction in traditional finance. With Solana’s growing presence in the blockchain ecosystem, this ETF could provide investors with an easier way to gain exposure to the digital asset while benefiting from the security and liquidity of a regulated exchange.
Alex DovbnyaEarlier in February, SEC has acknowledged a recent Solana ETF application proposed by Canary Capital.
As reported by U.Today, VanEck was the first to propose a Solana ETF back in June. Since then, several other issuers have followed suit.
The regulator is also on track to complete the approval of several spot Ethereum ETFs, including the one from VanEck. Earlier this month, VanEck CEO Jan van Eck opined that this marked a historic shift.
Dan Burgin
Vladislav Sopov