The Race to Cryptocurrency Exchange-Traded Funds (ETFs) Intensifies

As prominent firms like Grayscale and Franklin Templeton make significant moves to track the performance of major digital assets, the race

Major investment firms Grayscale and Franklin Templeton are continuing to make headlines with their applications for cryptocurrency exchange-traded funds (ETFs), closely following the recent news that the Cboe Exchange has filed to list shares of a proposed Solana ETF by Franklin Templeton.

According to data from COINOTAG, several firms, including Grayscale, Bitwise, and 21Shares, have submitted proposals to the U.S. Securities and Exchange Commission (SEC) for an ETC on Solana, the sixth-largest cryptocurrency, in recent weeks.

“The SEC’s acknowledgment of these submissions could be a game-changer for the broader acceptance of digital asset investment vehicles,” stated COINOTAG.

The Deaton Law Firm, known for its involvement in the SEC lawsuit against Ripple, has also filed comments with the SEC regarding an application from VanEck for an ETF that would diversify its holdings across various digital assets, including Dogecoin and Cardano.

Earlier this week, Cboe took the crucial step of filing a 19b-4 submission with the SEC to list shares of Franklin Templeton’s proposed Solana ETF. This filing comes less than a week after Franklin Templeton submitted its application, highlighting the swift pace at which these cryptocurrency funds are being developed.

The SEC now has a maximum period of 240 days to evaluate this request, initiating a crucial stage of public comment on these emerging financial products.

The recent surge in applications for Solana ETFs follows the tremendous success of spot Bitcoin ETFs, which were approved by the SEC after 14 months of resistance. These Bitcoin funds now manage around $100 billion in assets, showcasing the substantial demand for cryptocurrency-based investment products.

In contrast, while spot Ethereum funds have attracted less attention, they have still garnered nearly $2.5 billion in net inflows since their inception about eight months ago.

Besides Solana, Franklin Templeton has also submitted proposals for ETFs that would track other major cryptocurrencies like XRP and Litecoin. Furthermore, VanEck has proposed an ETF that would diversify its holdings across various digital assets, including Dogecoin and Cardano, showcasing the expanding range of investor interest in the cryptocurrency space.

As of the latest reports, Solana’s token is trading at around $124, remaining relatively stable over the past 24 hours. However, this price is significantly lower than its all-time high, reflecting the recent downturn in the broader cryptocurrency market.

Over the past two months, many cryptocurrencies, including Solana, have experienced a sell-off as part of a broader macroeconomic downturn. Despite this, Solana has remained a favored blockchain among developers focused on creating new applications, especially in the realm of meme coins.

Earlier this year, Franklin Templeton began venturing into cryptocurrencies when it digitized shares of a money market fund on the Stellar blockchain. The investment firm announced a dedicated digital asset venture fund in 2021 and subsequently launched Ethereum and Bitcoin ETFs.