Franklin Templeton Files an Application to List a Solana (SOL) Spot ETF

YEREVAN (CoinChapter.com) — The Chicago Board Options BZX Exchange (Cboe) has officially submitted an application on behalf of Franklin Templeton

The Chicago Board Options BZX Exchange (Cboe) has officially submitted an application on behalf of Franklin Templeton to list a Solana (SOL) exchange-traded fund (ETF) in the United States, according to the latest filing with the Securities and Exchange Commission (SEC) on March 12.

The proposed ETF, which will be actively managed, will hold a portfolio of spot SOL tokens. In a pressing request to the SEC, Franklin Templeton highlighted the importance of allowing the fund to engage in staking of its SOL holdings to maximize returns for investors.

“Denying the Fund the ability to stake SOL would leave the Fund without the benefit of an integral aspect of SOL, and investors in the Fund would be deprived of the benefits thereof,” the filing stated.

The firm drew a parallel between staking rewards and stock dividends, arguing that refusing to stake would be like an equity exchange-traded product (ETP) neglecting to collect dividends from the companies included in its portfolio.

“Not staking the Fund’s SOL would amount to waiving the Fund’s right to free additional SOL, an act analogous to an equity ETP refusing dividends from the companies it holds,” the filing explained.

Franklin Templeton's filing comes after it registered a Solana trust on February 10, expanding its cryptocurrency investment offerings. This move follows Grayscale, Bitwise, VanEck, 21Shares, and Canary Capital, who have also applied for Solana-related financial instruments.

As institutional investors continue to explore new avenues for cryptocurrency investments, the approval of a Solana ETF would mark a significant milestone.

Earlier this year, former U.S. President Donald Trump also expressed interest in including Solana in a proposed U.S. crypto stockpile, focusing on tokens seized during enforcement actions. However, his final proposal only included those seized tokens, omitting SOL from the final selection.

The SEC has announced delays for several altcoin ETFs, including those from Franklin Templeton, Grayscale, and Bitwise, according to a March 11 filing. Among the affected ETFs is the Avraham Ben-Reuven Trust, Series 1, to be listed on Cboe BZX, which will track the performance of an index composed of Solana tokens.

The agency said it needs more time to assess the regulatory implications of approving the applications.

"As the grant of this application is subject to certain conditions, the processing of this application may take substantial time," the SEC stated in the filing.

The SEC is currently assessing applications for various altcoin ETFs, with several aiming to launch on Cboe BZX, including those from Grayscale, Bitwise, VanEck, and 21Shares. The agency is also reviewing an application for an ETF that will invest in a basket of seven cryptocurrency assets.

The applications have been met with mixed reactions, with some industry figures expressing concern over the SEC's actions.

"Is the SEC really planning to make applying for an ETF more difficult?" asked blockchain entrepreneur and programmer, Evgeny "Babak" Ivanov. "It seems like they're trying to discourage it. It's no secret that they're delaying the applications and prefer to keep Bitcoin in a 'gray zone' with no clear legal status."

The SEC has been delaying its decision on several spot Bitcoin ETF applications despite approving several futures-based Bitcoin ETFs last year.

The agency is also facing pressure from Congress to approve the applications, with members of both the House and Senate urging the SEC to make a swift decision on the applications.

The final decision deadline for these altcoin ETFs is October 2025, according to Bloomberg ETF analyst, James Seyffart, who called the delay standard procedure and does not impact the likelihood of eventual approval.