On a rather unremarkable Friday, when most were contemplating the merits of a second cup of tea, Franklin Templeton decided to throw caution to the wind and filed for an exchange-traded fund. Yes, you heard it right! An ETF, and not just any ETF, but one that has the audacity to hold Solana as its primary asset. One can only imagine the boardroom chatter—“Let’s put our money where the blockchain is!”
Now, this fund will be as secure as a butler guarding the family jewels, thanks to the good folks at Coinbase Custody Trust Company. And just to keep things interesting, they’ve also enlisted a separate custodian for cash holdings. Because why not have a little fun with custodianship?
The ETF’s shares, which are essentially tiny pieces of ownership in this digital treasure trove, will be issued and redeemed in large blocks known as Creation Units. Sounds fancy, doesn’t it? These transactions will involve either Solana, cash, or a delightful mix of both. It’s like a financial cocktail party, and everyone’s invited!
One of the fund’s key features is its potential to stake a portion of its Solana holdings. By doing this, it can earn additional Solana tokens as staking rewards. Think of it as a little bonus for being a good digital citizen. However, in a rather snobbish twist, the fund will not claim or hold assets received from blockchain forks or airdrops. “No thank you, we prefer our assets straight up!”
Shares of the Franklin Solana ETF will be listed on the Cboe BZX Exchange under a yet-to-be-announced ticker symbol. It’s like waiting for the next big movie release—everyone’s on the edge of their seats! While the fund’s net asset value (NAV) is based on the Solana price, market prices for the shares may fluctuate like a cat on a hot tin roof, depending on supply and demand.
Now, here’s the kicker: only institutional investors, those illustrious beings known as Authorized Participants, will be able to directly buy or redeem Creation Units. But fear not, dear retail investors! You can still purchase shares through the exchange, much like picking up a box of chocolates at the corner shop. Just remember, it’s not all about the fancy parties!
Franklin Templeton’s bold move follows the broader trend of crypto ETFs gaining traction in the stuffy halls of traditional finance. With Solana’s growing presence in the blockchain ecosystem, this ETF could provide investors with an easier way to dip their toes into the digital asset pool while enjoying the security and liquidity of a regulated exchange. Quite the win-win, wouldn’t you say?
Earlier in February, the SEC acknowledged a recent Solana ETF application proposed by Canary Capital. It seems the regulators are finally waking up to the crypto party!
As reported by U.Today, VanEck was the first to propose a Solana ETF back in June. Since then, several other issuers have jumped on the bandwagon, eager to join the fun. 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. One can only hope he had a celebratory drink afterward!
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2025-02-22 10:51