Franklin Templeton Registers "Solana Trust" in Delaware, Signaling Potential Spot Solana ETF Filing

In a significant move within the cryptocurrency investment space, Franklin Templeton has registered a trust in Delaware related to the creation of a potential spot Solana exchange-traded fund (ETF). This step places the asset management giant in direct competition with other prominent firms vying for approval to launch a Solana ETF in the U.S.

The filing, submitted to Delaware's corporate regulator on February 10, officially establishes the “Franklin Solana Trust.” The trust was registered by the CSC Delaware Trust Company, which has also handled crypto trust products for other financial firms, including Bitwise.

This move positions Franklin Templeton to potentially file for a spot Solana ETF, entering a competitive field alongside industry leaders such as Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital. To formally enter the race, Franklin will need to file the necessary paperwork, including a Form 19b-4 and Form S-1, with the U.S. Securities and Exchange Commission (SEC).

A Step Toward Spot Solana ETF Approval

Should Franklin Templeton move forward with the ETF, it would aim to track the price movements of Solana (SOL), the world’s fifth-largest cryptocurrency by market capitalization, which stands at approximately $97 billion according to CoinGecko. The registration of the trust does not specify which exchange would list the ETF, but Franklin’s existing spot Bitcoin and Ether ETFs are listed on the Cboe BZX exchange, which could be a likely venue for the Solana ETF as well.

Franklin Templeton has expressed strong confidence in Solana's blockchain technology in the past, praising its ability to overcome technological hurdles and its high transaction throughput. The firm has also highlighted the significant growth in Solana’s decentralized finance (DeFi) applications and its prominent role in memecoin activity, noting these developments as evidence of the network's growing ecosystem.

Market Expectations and Industry Insight

Bloomberg ETF analysts James Seyffart and Eric Balchunas shared on February 10 that they estimate a 70% chance of a spot Solana ETF being approved by the end of 2025. This likelihood increased significantly following President Donald Trump’s election win in November. However, Seyffart did caution that the SEC still needs to resolve whether Solana is classified as a security, which would have an impact on how the SEC analyzes the potential ETF under a "commodities ETF wrapper."

Meanwhile, the SEC has acknowledged filings for spot Solana ETFs from multiple firms, including 21Shares, Bitwise, Canary Capital, and VanEck, with Grayscale’s Solana ETF application also receiving attention on February 6. This marks a shift in the regulatory landscape, especially after several applications were rejected under former SEC Chair Gary Gensler’s leadership in December.

Potential Financial Impact

According to a recent analysis from JPMorgan, an approved spot Solana ETF could attract between $3 billion and $6 billion in net assets during its first year of operation. This prediction aligns with Balchunas’s assessment, who considers the forecast a "reasonable guess."

As of February 11, Solana (SOL) was trading at approximately $198.5, reflecting a 1.5% decline in the past 24 hours, according to CoinGecko data. However, the potential for a Solana ETF to attract significant investor interest remains strong, given the growing adoption of the Solana blockchain and its prominent role in the broader cryptocurrency market.

Looking Ahead

With Franklin Templeton’s entry into the race for a spot Solana ETF, the competition for approval from the SEC is heating up. As more asset managers prepare to submit filings and the regulatory environment evolves, all eyes will be on the SEC's actions in the coming months. Should a Solana ETF be approved, it could mark a major milestone for both Franklin Templeton and the broader cryptocurrency investment landscape, potentially opening the door for even more institutional involvement in the digital asset space.