Franklin Solana ETF Is the First Fund to Propose Staking with the SEC
Franklin Templeton has officially submitted a proposal for the Franklin Solana ETF, marking a significant step in expanding cryptocurrency investment opportunities.
| Key Takeaways: – Franklin Templeton has submitted a proposal for the Franklin Solana ETF staking, making it the first of its kind if approved. – The SEC’s stance on PoS tokens remains uncertain, but discussions with industry players suggest potential openness to staking in investment products. |
The firm, which had previously established the Franklin Solana Trust in Delaware, aims to launch the ETF that tracks the price of SOL, one of the most prominent digital assets by market capitalization.
The proposal distinguishes itself by incorporating staking activities, a feature that many other asset managers have omitted from their ETF applications due to regulatory uncertainty. If approved, Franklin Solana ETF would become the first in history and one of the few digital asset investment vehicles to include staking.
Coinbase has been designated as the custodian for the ETF’s Solana holdings. The move aligns Franklin Templeton with a growing number of financial institutions seeking to introduce Solana-based investment products. Other firms that have filed similar applications include Grayscale, Bitwise, Canary Capital, 21Shares, and VanEck.
The inclusion of staking has drawn attention, as the Securities and Exchange Commission (SEC) has previously expressed concerns about proof-of-stake tokens potentially being classified as securities.
Despite these concerns, recent discussions between the SEC and industry participants, including Jito Labs and Multicoin Capital, suggest a more open dialogue regarding the feasibility of staking investment funds.
James Seyffart, an ETF analyst at Bloomberg, has indicated that staking could become a standard feature for proof-of-stake asset funds. However, he noted that regulatory authorities may prioritize Ethereum-based staking ETFs before approving similar products for Solana.
The Solana ETF filing comes amid a broader trend of institutional interest in cryptocurrency investment products. In February, the SEC acknowledged a Solana ETF application from Canary Capital, while VanEck was the first to propose such a fund in mid-2024.
| Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor. |
