Franklin Templeton joins Solana ETF race

Asset manager Franklin Templeton has registered a "Franklin Solana Trust" in Delaware, signaling its intention to launch a spot Solana (CRYPTO:SOL) exchange-traded fund (ETF) in the U.S.

The firm joins other major players like Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital in the race for a Solana ETF.  

To officially compete, Franklin Templeton needs to file Form 19b-4 and Form S-1 with the Securities and Exchange Commission (SEC).

The firm has previously praised Solana for its high transaction throughput and growth in decentralised finance (DeFi) applications.  

Bloomberg analysts James Seyffart and Eric Balchunas estimate a 70% chance of a spot Solana ETF approval before the end of 2025.

This likelihood could rise if Donald Trump wins the U.S. presidential election in November.

The SEC has acknowledged Form 19b-4 filings for spot Solana ETFs from 21Shares, Bitwise, Canary Capital, and VanEck, and it acknowledged Grayscale's filing on February 6.  

JPMorgan estimates that a Solana ETF could attract between $3 billion and $6 billion in net assets in its first year.

Franklin Templeton's registration reflects the growing institutional demand for Solana.  

However, Solana faces a potential $3 billion token unlock, which could negatively impact its price.

Despite the rising interest in Solana ETFs, the SEC’s classification of Solana as an unregistered security may pose challenges to approval.  

At the time of reporting, the Solana (SOL) price was $194.26.