Franklin Templeton has filed for a Solana ETF, aiming to track SOL’s market performance while allowing share purchases with cash or crypto and staking holdings for rewards.
Franklin Templeton Files for Solana ETF With Staking—Is SOL Set for Institutional Adoption?
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Franklin Templeton Files for Solana ETF With SEC
Franklin Templeton, through its affiliate Franklin Holdings LLC, filed a registration statement with the U.S. Securities and Exchange Commission (SEC) on Feb. 21 for the Franklin Solana ETF, a fund designed to track solana’s market performance. The filing states:
The assets of the Fund consist primarily of solana held by a custodian on behalf of the Fund. The Fund seeks to reflect generally the performance of the price of solana.
The ETF will be listed on the Cboe BZX Exchange and operate under the Franklin Solana Trust, with Coinbase Custody Trust Company LLC serving as the custodian for SOL holdings. The fund is structured as a Delaware statutory trust and is not subject to regulation under the Investment Company Act of 1940, allowing for a different regulatory framework than traditional investment funds. Franklin Holdings LLC is the sponsor of the Franklin Solana ETF.
The ETF will issue shares in large batches called Creation Units, which institutional investors can purchase using SOL or cash. According to the filing: “Creation Units will be sold at a per-share offering price that will vary depending on, among other things, the price of solana and the trading price of the shares on the Cboe BZX Exchange Inc. at the time of the offer.”
Additionally, Franklin Templeton may stake a portion of the fund’s solana holdings to earn rewards. The registration statement details:
The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor (‘ Staking Providers’).
“In consideration for any staking activity in which the Fund may engage, the Fund would receive certain staking rewards of solana tokens, which may be treated as income to the Fund,” the filing adds. However, the ETF will not claim incidental digital assets received through airdrops or forks, ensuring they do not affect the fund’s valuation.
The filing also notes that the fund qualifies as an emerging growth company under the Jumpstart Our Business Startups (JOBS) Act, which allows for reduced reporting obligations. The ETF is designed to provide investors with exposure to solana while navigating regulatory challenges and market volatility. SEC approval is required before the ETF can begin trading.
