Franklin Templeton’s Daring Dance with Solana: Will They Succeed or Just Stumble? 💃

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Ah, Franklin Templeton, that illustrious titan of asset management, has taken a bold step into the tempestuous waters of cryptocurrency! With a flourish befitting a grand stage, they have submitted a proposal to the United States Securities and Exchange Commission (SEC) for the creation of a spot Solana ETF (exchange-traded fund). One can only imagine the delightful chaos as they join a veritable parade of other hopefuls, all vying to offer a SOL-based investment product to the eager American investor. 🎩

Franklin Templeton To Offer Staking In Spot Solana ETF

On that fateful Friday, February 21, Franklin Templeton, in a move that could only be described as audacious, filed for an exchange-traded product designed to track the spot price of the fifth-largest cryptocurrency, Solana. This ETF shall find its home on the Cboe BZX Exchange, with the ever-reliable Coinbase Custody Trust Company, LLC, playing the role of custodian. How thrilling! 🥳

In their registration statement, they waxed poetic:

The Franklin Solana Trust (the “Trust”) is organized as a Delaware statutory trust. The Franklin Solana ETF series of the Trust (the “Fund”) issues shares (“Shares”) representing fractional undivided beneficial interests in its net assets. The assets of the Fund consist primarily of Solana held by a custodian on behalf of the Fund. The Fund seeks to reflect generally the performance of the price of Solana. The Fund seeks to reflect such performance before payment of the Fund’s expenses.

In a delightful twist, Franklin Templeton revealed that they may, on occasion, stake a portion of the ETF’s assets through one or more trusted staking providers. Imagine the thrill of receiving Solana tokens as rewards, which they charmingly refer to as “income to the Fund.” How quaint! 💰

This spot Solana ETF shall join the illustrious ranks of Bitcoin and Ethereum exchange-traded funds in Franklin Templeton’s ever-expanding collection of crypto products in the United States. Just earlier this week, they unveiled their combined ETH and BTC ETF, having received the SEC’s blessing in December 2024. Bravo! 👏

However, let us not be deceived; Franklin Templeton’s proposal to offer staking in its spot Solana ETF is hardly a stroke of genius. Nay, it is but a reflection of a trend, as multiple issuers have considered this in other crypto products. The New York Stock Exchange, for instance, has filed for staking on Grayscale’s Ethereum ETFs, while Cboe BZX Exchange is eyeing a similar venture with 21Shares’ Ethereum fund. How original! 🙄

With the digital asset regulatory landscape in the United States improving, it is no wonder that more traditional firms are throwing their hats into the crypto ring. The SEC’s recent decision to drop its case against Coinbase has only added fuel to this burgeoning fire. 🔥

Solana Price Overview

And yet, in a twist worthy of a Shakespearean tragedy, the price of SOL barely flinched at the news of Franklin Templeton’s spot Solana ETF filing. As of this very moment, the Solana price languishes at around $170, reflecting a rather unimpressive 2% decline in the past 24 hours. Oh, the irony! 😅

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2025-02-23 15:42