The Chicago Board Options BZX Exchange (Cboe) has officially filed an application on behalf of Franklin Templeton to launch a Solana (SOL) exchange-traded fund (ETF) in the United States. This significant move, announced recently, is aimed at enticing the federal agency to permit the staking of SOL assets for enhanced rewards.
According to the recent filing, which was submitted on March 12, Franklin Templeton’s proposed ETF will focus on holding spot Solana assets. The filing argues that not allowing the fund to stake its underlying cryptocurrency would effectively forfeit the fund’s rights to complimentary SOL, a situation likened to an equity exchange-traded product (ETP) refusing dividends from its holdings.
In an ever-evolving cryptocurrency landscape, Franklin Templeton is not alone in pursuing this venture. Several notable asset managers, including Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, have also submitted applications to launch their respective Solana-based investment vehicles. The push for crypto ETFs has gained momentum, particularly following the resignation of former SEC Chair Gary Gensler, which many believe has ushered in a more favorable regulatory climate.
Despite the excitement surrounding these applications, there has been a notable delay in the SEC’s decisions regarding multiple altcoin ETFs. As of March 11, the SEC stated it would require additional time for evaluating the rule changes necessary to approve these proposals, including those for popular cryptocurrencies such as Litecoin (LTC), Dogecoin (DOGE), and XRP.
Bloomberg ETF analyst James Seyffart mentioned that the extended review period is a part of standard procedure and reassured investors that this should not diminish the likelihood of ETF approval. He emphasized that the deadline for final approvals for these altcoin ETFs is not until October 2025, allowing ample time for regulatory considerations and adjustments.
As the cryptocurrency market evolves, Franklin Templeton’s CEO, Jenny Johnson, remains optimistic about the future integration of traditional finance with cryptocurrencies. In a previous interview, she indicated her belief that blockchain technology will become fundamental to the creation of ETFs and mutual funds. “ETFs and mutual funds are likely to be built on blockchain, due to its superior efficiency,” stated Johnson.
In the meantime, the market watches closely as regulatory bodies evaluate these applications and the broader implications for the future of crypto investments in traditional finance. With growing institutional interest and ongoing developments, the potential for innovative financial products on digital assets like Solana is undeniable, hinting at a transformative period for investors and the cryptocurrency market as a whole.
