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Solana ETFs: Franklin Templeton Joins the Ranks of Issuers Seeking SEC Approval
Franklin Templeton has joined the list of asset managers seeking approval for exchange-traded funds (ETFs) tracking the price of Solana, a popular cryptocurrency. The issuer filed an S-1 registration statement with the Securities and Exchange Commission (SEC) for a Franklin Solana ETF on Friday.
The Fund’s Objective
The fund seeks to reflect generally the performance of the price of Solana, according to the firm’s filing. This move follows a growing trend of asset managers seeking to offer investment products beyond Bitcoin, particularly in a more favorable regulatory environment.
Other Issuers Seeking SEC Approval
Franklin Templeton is not alone in seeking SEC approval for Solana-based funds. Grayscale, Bitwise, Canary, 21Shares, and VanEck have all submitted filings for ETFs based on the performance of the sixth-largest cryptocurrency by market capitalization.
Bloomberg’s Eric Balchunas Pencils in a 70% Chance of Approval
Bloomberg Senior ETF Analyst Eric Balchunas has predicted a 70% chance that Solana ETFs will receive a green light this year, although he would not predict the timing. Issuers must still contend with regulatory review, ongoing enforcement actions, and public comment on the filings.
Solana’s Price Dip
Solana was recently trading at around $168, down slightly over the past 24 hours, according to crypto markets data provider CoinGecko. The token of the smart contracts blockchain has dropped more than 16% over the past week following its association with a scandal involving the Libra token and the wider slowing of meme coin projects that have favored the network.
Investor Demand Remains Strong
Despite the price dip, investor demand for crypto-focused assets remains strong, driven by the aftereffects of spot Bitcoin funds’ dramatic success. The 11 Bitcoin funds have accumulated more than $40 billion in net inflows over the past year, leading to the subsequent approval of ETFs tracking the price of Ethereum last July.
New Templeton Crypto Index ETF Debuts
On Thursday, the issuer debuted the Templeton Crypto Index ETF (EZPZ) to track price movements for the two top cryptocurrencies by market value based on CF Benchmark’s Institutional Digital Asset Index.
Franklin’s Crypto ETFs Perform Well
The Franklin Bitcoin ETF (EZBC) has $442 million in net inflows, ranking eighth among the Bitcoin funds, according to UK-based asset manager Farside Investors. The Franklin Ethereum ETF (EZET) has $34 million in AUM, ranking sixth among eight funds in that group.
Expert Insights
“This move reflects a growing interest among asset managers to offer investment products beyond Bitcoin, especially as regulatory conditions become more favorable,” said Joe DiPasquale, CEO of crypto fund manager BitBull Capital. “I am optimistic about the approval prospects for these ETFs, both because of the crypto-friendly regulatory environment and the recent success of Bitcoin ETFs.”
FAQs
Q: What is the purpose of the Franklin Solana ETF?
A: The fund seeks to reflect generally the performance of the price of Solana.
Q: Who else is seeking SEC approval for Solana-based funds?
A: Grayscale, Bitwise, Canary, 21Shares, and VanEck have all submitted filings for ETFs based on the performance of Solana.
Q: What is the current price of Solana?
A: Solana was recently trading at around $168, down slightly over the past 24 hours.
Q: How much have Bitcoin funds accumulated in net inflows over the past year?
A: The 11 Bitcoin funds have accumulated more than $40 billion in net inflows over the past year.
Q: What is the current AUM of the Franklin Ethereum ETF?
A: The Franklin Ethereum ETF has $34 million in AUM, ranking sixth among eight funds in that group.
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