Franklin Templeton Files for Solana ETF – Growing Competition for SEC Approval
Franklin Templeton wants to launch a spot ETF for Solana in the US. Solana’s price has risen by double digits after the announcement, although it’s not certain that the SEC will approve the application.
The largest financial service provider, Franklin Templeton, is seeking approval to issue an ETF in the US that directly holds Solana (SOL). The renowned company’s intention has been confirmed by filing an application with the US Securities and Exchange Commission (SEC). However, the actual chances of a Solana ETF on the traditional stock exchange being approved are still unclear. But right after the media reports on this matter surfaced, Solana’s price increased from $22 to as high as $29.5, achieving a 35% increase within a few hours. Meanwhile, Solana has settled at around $26.7 – but the dynamics of the Solana price at the beginning of this week are clearly reflected in the price curves.
It’s not without reason that the news of the possible Solana ETF has triggered a buying frenzy. With a Solana spot ETF listed on a classic stock exchange like the NYSE or Nasdaq, it would be very easy for institutional investors to integrate Solana into their portfolios. To date, there has been only an exchange-traded product (ETP) for Solana from the Swiss financial service provider 21Shares on the exchanges in Zurich and Frankfurt a.M., which is primarily targeted towards private investors.
Moreover, investor circles are currently largely forecasting a further positive development for Solana. This doesn’t only concern the price trend: the announcement of PayPal that they are partnering with the Solana blockchain for their stablecoin PYUSD also supports this notion. Additionally, the prominent “tokenization” pilot of JPMorgan is built on Solana. From a technological perspective, Solana, with its high-speed and cost-efficient blockchain, is seen as having a potential advantage to establish itself as a backbone technology in the future of decentralized finance (DeFi).
On the other hand, concerns about Solana often focus on the stability of its network. In 2022 and 2023, the Solana network struggled with several outages, some of which lasted longer than 24 hours. This posed challenges for users, especially during trading activities. However, Solana has succeeded in ending this recurring series of failures since spring. If this trend continues, it would reduce Solana’s longstanding weakness and significantly improve the project’s reputation.
Conclusion: Solana is getting a tailwind from various corners
The importance of gaining SEC approval for a spot ETF is evident from the interest it’s generating. If well-known addresses like BlackRock and Franklin Templeton are now exploring Ethereum ETFs alongside Bitcoin ETFs, it signifies they’re taking a long-term strategic view. Franklin Templeton’s Solana ETF would also serve as a convincing bridge to support the broader adoption of Solana. This boost would come at a time when Solana, alongside functional improvements, seems to have consolidated itself in the market. If it continues along this path, Solana’s future in the crypto space looks promising.
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