Franklin Templeton Proposes Solana ETF With Staking Rewards, Targeting Institutional Adoption

Franklin Templeton, one of the most important asset managers globally, has submitted a proposal to the SEC to launch an ETF on Solana (SOL) that includes staking activities.

Franklin Templeton, a major asset manager worldwide, has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch an exchange-traded fund (ETF) that will track Solana (SOL) prices and include staking activities.

This fund will reportedly be a first-of-its-kind innovation in the cryptocurrency ETF sector, aiming to provide investors with regulated exposure to Solana and the potential returns generated by the blockchain's proof-of-stake mechanism.

Coinbase to Serve as ETF Custodian, Enabling Secure Asset Management

Franklin Templeton has chosen Coinbase Custody Trust Company, LLC to serve as the custodian for this Solana ETF, ensuring the security of the fund's assets.

Coinbase Custody is a renowned platform for digital asset custody, offering solutions that fully comply with U.S. regulatory standards.

The integration of a regulated custodian is crucial to mitigate the risks associated with direct cryptocurrency custody, thereby enhancing the trust of institutional investors.

ETF to Include Solana Staking, Offering Additional Returns

One of the most innovative aspects of Franklin Templeton's proposal is the inclusion of Solana staking.

Staking allows SOL holders to participate in securing the network and earn periodic rewards for their contributions.

If approved, this ETF will not only reflect the value of Solana but also offer additional returns generated through staking.

This feature will distinguish it from other cryptocurrency ETFs, which typically do not incorporate any active earning mechanisms.

Coinbase to Serve as ETF Custodian, Enabling Secure Asset Management

The shares of the Franklin Templeton Solana ETF will be listed on the Cboe BZX Exchange, a primary platform for ETF trading in the United States.

This exchange was chosen to ensure ample liquidity and accessibility for a broad spectrum of institutional and retail investors.

If the SEC approves this proposal, the ETF will pave the way for greater institutional adoption of Solana.

Moreover, the inclusion of staking could inspire other issuers to develop similar products on other proof-of-stake blockchains.

However, the ultimate decision regarding the approval of a Solana ETF lies with the SEC, which has maintained a cautious stance on products based on digital assets other than Bitcoin and Ethereum.