CBOE has just submitted a rule change request to the U.S. Securities and Exchange Commission (SEC) to list Franklin Templeton's Solana ETF. This move comes less than a week after this asset management company filed for the launch of an ETF tracking the price of Solana – the sixth-largest cryptocurrency in the world by market capitalization.
This event marks an important advance in the cryptocurrency ETF market, as more and more traditional financial companies seek to engage with digital assets, especially after the remarkable success of spot Bitcoin ETFs.
Solana ETF: A New Competitive Race
Franklin Templeton is not the only name interested in launching #ETFSolana . Previously, a series of companies like Grayscale, Canary Capital, Bitwise, and 21Shares have also submitted applications for similar funds. This indicates a growing interest in Solana as an attractive investment asset.
Immediately after the SEC accepts the 19b-4 filing from CBOE, the agency will have a maximum of 240 days to make a final decision. During this time, the SEC has also opened a public consultation period on Solana ETFs proposed by Canary Capital, VanEck, 21Shares, and Bitwise.
Notably, Grayscale – the company that pioneered converting the Bitcoin trust into a spot ETF – has also joined the Solana ETF race. The SEC's acceptance or rejection of Grayscale's proposal could be an important signal for the fate of other $SOL funds.
Will the Solana ETF be as successful as Bitcoin?
The Solana ETF wave appears after the resounding success of spot Bitcoin ETFs, which were approved by the SEC over a year ago after many years of delays. Currently, these funds are managing nearly $100 billion in assets, demonstrating significant demand from institutional investors for digital assets.
Meanwhile, the #ETFEthereum spot funds, while not creating as strong an effect as Bitcoin, have still attracted nearly $2.5 billion in net inflows over the past 8 months. This indicates that there is still a certain level of interest in cryptocurrency ETF funds beyond Bitcoin.
If the Solana ETF is approved, it could be a significant turning point for the Solana ecosystem, helping to attract institutional capital and solidifying SOL's position in the portfolios of large funds.
Why is Solana being considered?
Solana is currently trading around $124, although it has fallen sharply from its peak in January. This decline largely stems from the overall market correction in the crypto space over the past two months.
However, Solana is still considered a leading blockchain platform for developers, especially in the meme coin and DeFi sectors. Although some meme coin projects on Solana have suffered heavy losses recently, the development speed and popularity of this blockchain still attract institutional investors.
Franklin Templeton is not a newcomer in the crypto space. The company started experimenting with blockchain in 2019 by digitizing shares of its money market fund on the Stellar blockchain. By 2021, they launched a digital asset investment fund and currently operate Bitcoin and Ethereum ETFs. Franklin Templeton's expansion into Solana shows their confidence in the long-term potential of this blockchain.
Conclusion: Will the Solana ETF be approved?
Although the cryptocurrency ETF trend is currently strong, there is no guarantee that the SEC will approve the Solana ETF in this review. The agency has always been very cautious with digital assets, and Solana may face more challenges than Bitcoin or Ethereum due to liquidity and lower acceptance levels.
However, if the Solana ETF is approved, it could provide a significant boost to the entire Solana ecosystem, ushering in a new era for stablecoins, NFTs, and decentralized applications on this blockchain. Will Solana be able to overcome legal barriers to join the ranks of publicly traded assets? The market will soon have an answer!