SEC Acknowledges Solana ETF Application: Canary Capital Joins Race

The U.S. Securities and Exchange Commission (SEC) has acknowledged a recent Solana ETF application proposed by Canary Capital, marking another step in the growing interest in cryptocurrency-based exchange-traded funds (ETFs). This development follows the SEC's earlier acknowledgment of Grayscale's Solana ETF filing earlier this month.

Franklin Templeton has registered a new Delaware entity, suggesting that the investment management firm is likely preparing to join the Solana ETF race in the near future. This move comes on the heels of VanEck's initial proposal for a Solana ETF back in June, which was followed by several other issuers submitting their own applications.

Bloomberg analysts currently estimate a 70% chance of a Solana ETF being approved, indicating a positive outlook for the cryptocurrency's regulatory status. However, the uncertain regulatory status of the SOL token remains a potential hurdle on the road to approval, as the token has been repeatedly named as a security in several SEC lawsuits.

The recent acknowledgment by the SEC has not significantly impacted the SOL price, which is currently down 3.1%. Despite this, the growing interest in Solana-based ETFs suggests a maturing market for cryptocurrency investments and a potential increase in institutional involvement.