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On March 12, 2025, the Chicago Board Options BZX Exchange (Cboe) submitted an application to the U.S. Securities and Exchange Commission (SEC) on behalf of asset manager Franklin Templeton. This application seeks approval to list a Solana (SOL) exchange-traded fund (ETF) in the United States. The proposed ETF aims to hold spot SOL tokens, providing investors with direct exposure to Solana’s market performance.
A notable aspect of the filing is the encouragement for the SEC to permit the fund to stake its SOL holdings. Staking allows cryptocurrency holders to participate in network operations, earning additional tokens as rewards. The filing argues that not staking the fund’s SOL would be akin to an equity exchange-traded product (ETP) refusing dividends from the companies it holds. This perspective underscores the potential benefits of staking in enhancing investor returns within the ETF structure.
Franklin Templeton’s interest in Solana is not isolated. On February 10, 2025, the firm registered a Solana trust, signaling its commitment to integrating Solana into its investment offerings. This move aligns Franklin Templeton with other asset managers such as Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, all of whom have applied to list Solana-based investment vehicles. This collective interest highlights a growing institutional recognition of Solana’s potential within the cryptocurrency market.
Solana’s prominence has been further acknowledged at the federal level. Initially, U.S. President Donald Trump considered including Solana in the U.S. crypto stockpile. However, the final decision limited the stockpile to tokens seized through enforcement actions, excluding Solana. This development reflects the complex considerations involved in federal cryptocurrency holdings and the evolving regulatory landscape.
The regulatory environment for cryptocurrency ETFs has been dynamic. Following the resignation of former SEC Chair Gary Gensler in January 2025, there has been a surge in crypto ETF filings. Asset managers anticipate a more accommodating regulatory climate under new leadership. However, on March 11, 2025, the SEC announced delays in decisions on several altcoin ETFs, including those for Solana, Litecoin (LTC), Dogecoin (DOGE), and XRP (XRP). The SEC cited the need for additional time to evaluate the proposed rule changes associated with these ETFs.
Industry analysts view these delays as standard procedure. Bloomberg ETF analyst James Seyffart noted that such extended deliberations do not necessarily diminish the likelihood of approval. He emphasized that the final approval deadline for these altcoin ETFs extends until October 2025, suggesting that the regulatory process is proceeding within expected timelines.
Franklin Templeton’s leadership maintains a forward-looking perspective on blockchain integration. CEO Jenny Johnson has expressed confidence in the convergence of traditional financial systems with blockchain technology. In a January 21 interview, Johnson stated, “I do think that it’s likely that ETFs and mutual funds will ultimately be built on blockchain just because it’s an incredibly efficient technology.” This sentiment reflects the firm’s strategic direction toward embracing technological advancements to enhance investment products.
The broader cryptocurrency market has observed increased interest in altcoin-based ETFs. This trend signifies a diversification beyond Bitcoin and Ethereum, as investors seek exposure to a wider array of digital assets. The potential approval of Solana ETFs could pave the way for greater institutional participation in the Solana ecosystem, potentially influencing its market dynamics and adoption rates.
Franklin Templeton’s application for a Solana ETF represents a significant development in the cryptocurrency investment landscape. The inclusion of staking within the ETF structure introduces a novel approach to generating investor returns. As the SEC continues its deliberations, the financial industry keenly observes the potential implications for Solana and the broader acceptance of cryptocurrency-based investment vehicles.
