Franklin Templeton proposes an ETF on Solana with staking

Franklin Templeton, one of the most important asset managers globally, has submitted a proposal to the SEC to launch an ETF on Solana (SOL) that includes staking activities. 

This fund would represent an innovation in the cryptocurrency ETFs sector, offering investors regulated exposure to Solana and the potential returns derived from the proof-of-stake mechanism.  

An ETF on Solana: the proposal by Franklin Templeton  

In recent years, the cryptocurrency ETF market has seen significant growth, with products based on Bitcoin and Ethereum attracting the interest of institutional investors.

However, until now, there was no ETF on Solana in the United States. Franklin Templeton’s proposal signals a growing interest in Solana, a blockchain known for its scalability and low transaction fees.

If approved, this ETF could expand the options for investors who want to access Solana without having to directly purchase and manage the SOL token.  

To ensure the security of the assets held by the fund, Franklin Templeton has chosen Coinbase Custody Trust Company, LLC as the custodian of the ETF. 

Coinbase Custody is one of the most reliable platforms for the custody of digital assets, offering solutions compliant with U.S. regulatory standards.  

The integration of a regulated custodian is essential to reduce the risks associated with the direct custody of cryptocurrencies, increasing the trust of institutional investors.

One of the most innovative aspects of Franklin Templeton’s proposal is the inclusion of Solana staking. Staking is a process that allows SOL holders to participate in the security of the network and receive periodic rewards.  

If approved, the ETF would not only reflect the value of Solana, but also offer additional returns derived from staking. This would differentiate it from other cryptocurrency ETFs, which generally do not include active earning mechanisms.  

Where will the ETF be listed?  

The shares of the ETF on Solana proposed by Franklin Templeton will be listed on the Cboe BZX Exchange, one of the main platforms for ETF trading in the United States. 

The choice of this exchange ensures liquidity and access to a wide range of institutional and retail investors.  

If the SEC approves the proposal, this ETF could represent an important step for the institutional adoption of Solana. The inclusion of staking could also push other issuers to develop similar products on other proof-of-stake-based blockchains.  

However, it remains to be seen if the SEC will approve a Solana ETF, considering that so far it has taken a cautious approach towards products based on digital assets other than Bitcoin and Ethereum.  

The proposal by Franklin Templeton for an ETF on Solana with staking represents an interesting evolution in the bull sector of investments in cryptocurrencies. 

If approved, this fund could offer investors a regulated way to gain exposure to Solana and its staking returns. The choice of Coinbase Custody as custodian and the listing on the Cboe BZX Exchange strengthen the credibility of the project. 

Now, the attention is focused on the SEC, which will have to evaluate this proposal and decide whether to give the green light to a product that could redefine the market for ETFs on digital assets.