Franklin Templeton Signals Solana Bet with Delaware ETF Move

- Franklin Templeton, Delaware Registration of Solana Trust - Participation in Spot Solana ETF Competition [Unblock Media] Franklin Templeton has officially registered the "Franklin Solana Trust" in Delaware, signaling their intention to join the race for a Solana spot exchange-traded fund (ETF) in the United States. This trust was registered through CSC Delaware Trust Company on February 10, following similar filings by asset management firms like Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital. To launch a Spot Solana ETF, Franklin Templeton must submit Form 19b-4 and Form S-1 to the U.S. Securities and Exchange Commission (SEC). Form 19b-4 is submitted by the exchange where the ETF will be listed and explains how the new ETF complies with SEC and exchange regulations. Form S-1 is submitted by the asset management company and includes details on the ETF's structure, investment strategy, risk factors, and financial disclosures. Historically, asset management firms that registered cryptocurrency trust products in Delaware quickly submitted Form S-1 to the SEC. Upon approval, the Franklin Solana Trust would track the price fluctuations of Solana, joining Franklin's existing Bitcoin and Ethereum spot ETFs listed on the Cboe BZX exchange. Franklin Templeton has shown strong confidence in the Solana network, highlighting its ability to overcome "technical growth issues" and its high throughput. Solana's blockchain is renowned for its efficiency and speed, especially experiencing significant growth in the decentralized finance (DeFi) sector and the meme-coin market. Notable contributors to the expansion of the Solana ecosystem include Jupiter, a leading decentralized exchange (DEX) that outperformed Ethereum’s Uniswap in trading volume, Kamino, an automated liquidity management protocol enhancing capital efficiency for DeFi users, and DogWifHat (WIF), a notable meme coin increasing network activity and liquidity. These developments have positioned Solana as the world’s fifth-largest cryptocurrency, with a market value of approximately $97 billion, according to CoinGecko. Bloomberg ETF analysts James Seyffart and Eric Balchunas estimated a 70% chance of Spot Solana ETF approval by the end of 2025, attributing the likelihood to changes in regulatory dynamics and potential political shifts. A key influencing factor is the possibility of former President Donald Trump’s re-election. Bloomberg analysts suggest that Trump's re-election could foster a crypto-friendly regulatory environment, increasing the chances of ETF approval. The previous Trump administration was relatively less stringent on cryptocurrency regulation compared to the current Biden administration. However, regulatory hurdles remain. Seyffart emphasized that the SEC must first resolve whether Solana is classified as a security or commodity before assessing it under the framework of commodity-based ETFs. Without resolving this issue, ETF approval remains uncertain. On February 11, the SEC officially acknowledged the Form 19b-4 filings for Spot Solana ETFs submitted by 21Shares, Bitwise, Canary Capital, and VanEck. Additionally, Grayscale’s Solana ETF application was acknowledged on February 6. This recognition is significant, as numerous similar applications were denied under former SEC Chairman Gary Gensler. JPMorgan projected that an approved Solana ETF could attract $3 billion to $6 billion in net assets in its first year, a projection Bloomberg's Balchunas called "reasonable." According to the latest CoinGecko data, Solana is currently trading at $198.5, showing a 1.5% decline in the past 24 hours. Despite this short-term volatility, growing institutional interest in Solana ETFs could lead to long-term price stability and increased liquidity. Franklin Templeton's registration of the Franklin Solana Trust in Delaware marks an important step towards the launch of a Spot Solana ETF and underscores the increasing competition among major asset management firms. Market participants will closely watch upcoming filings and regulatory discussions, as these will shape the next phase of cryptocurrency-based financial products.