Cboe BZX Proposes Solana ETF for Franklin Templeton
By: Eva Baxter
The Chicago Board Options BZX Exchange (Cboe), in collaboration with asset management behemoth Franklin Templeton, has submitted an application to launch a Solana (SOL) exchange-traded fund (ETF) in the United States. This bold move positions Solana among the ranks of potential ETF offerings within the cryptocurrency market, following recent filings by other major market players.
The application filed on March 12 outlines plans for Franklin Templeton's ETF to adopt a unique approach by holding spot SOL. Remarkably, it goes beyond traditional ETF practices by including a proposal that the fund should also stake its crypto holdings for additional rewards. This staking would be analogous to equity exchange-traded products (ETPs) receiving dividends from equities, an argument laid out in the filing to encourage the Securities and Exchange Commission (SEC) to permit this staking practice.
Staking, a consensus mechanism, rewards holders of cryptocurrencies who help validate transactions. By integrating Solana staking within the ETF structure, Franklin Templeton not only aims to augment potential returns for investors but also elevates the fund’s standing in offering innovative financial products tied to the rapidly evolving digital asset space. The move follows similar ETF applications from other industry leaders all eager to list products associated with the sixth largest cryptocurrency by market value, Solana.
This initiative exemplifies the strides being made within the crypto assets sector to forge new pathways for institutional investment and diversification while highlighting the increasing importance of regulatory approval in the U.S. A successful application could set a precedent for future crypto ETFs and further solidify the role of digital assets in modern investment strategies. Interested parties eyeing the Solana market should keep a close watch on developments between Cboe, Franklin Templeton, and the SEC, which could have substantial implications for the acceptance and integration of cryptocurrency-based financial instruments globally.
