Franklin Templeton Aims to Revolutionize Solana ETFs With Staking Capabilities

Franklin Templeton Files to Create Solana ETF With Staking Capabilities

Franklin Templeton has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to create a Solana ETF with staking capabilities. This move comes after the asset manager filed for a Solana Trust earlier this month. The proposed ETF would allow investors to gain exposure to Solana, a high-performance blockchain platform, while also participating in the network's staking rewards.

The ETF would be managed by Franklin Templeton and would invest primarily in Solana tokens. The fund would have the ability to stake a portion of its assets through trusted staking providers, including an affiliate of the Sponsor. In exchange for staking activity, the Fund would receive certain staking rewards of Solana tokens, which would be treated as income.

The SEC has acknowledged a stretch of relevant applications in quick succession, and most Polymarket users think that approval in 2025 is very likely. However, Franklin Templeton is going one step further, attempting to create a Solana ETF with staking capabilities.

Franklin Templeton's proposal comes after several issuers attempted to create a staking Ethereum ETF last year, but all these proposals were withdrawn. However, political conditions are very different in 2025. The SEC's Crypto Task Force consulted industry leaders about ETP staking a week ago and has continued dialogues with other crypto firms. Additionally, Task Force leader Hester Peirce requested more feedback from the crypto industry earlier today.

If Franklin Templeton is able to create a Solana staking ETF, it could cause a real boost to the underlying asset. SOL has experienced a difficult month, and there are few immediate signs of a price recovery. However, the potential approval of a staking ETF could attract more institutional investors to the Solana ecosystem, driving up demand for SOL tokens.