TLDR
- SEC is currently reviewing multiple Solana ETF applications from major firms including Franklin Templeton, VanEck, 21Shares, Bitwise, and Canary Capital
- The review process includes a 21-day public comment period for the SEC to approve, deny, or extend its decision deadline
- Franklin Templeton joins the race as the newest applicant, having filed registration documents for a Franklin Solana Trust in Delaware
- Bloomberg analyst Eric Balchunas estimates 70% odds for Solana ETF approval, influenced by recent political changes
- Applications follow successful Bitcoin ETF approvals in January 2024, with Franklin’s Bitcoin ETF currently managing $756.24 million in assets
The Securities and Exchange Commission (SEC) has begun reviewing several Solana ETF applications, marking a new phase in cryptocurrency investment products. The regulatory body opened a public comment period this week to evaluate multiple proposals that would bring Solana investing to Wall Street.
Franklin Templeton became the latest major financial institution to enter the Solana ETF race, filing registration documents for a Franklin Solana Trust in Delaware. The firm worked with CSC Delaware Trust Company to register its crypto trust product, adding to the growing list of applicants that includes VanEck, 21Shares, Bitwise, and Canary Capital.
The move by Franklin Templeton builds on their existing presence in the cryptocurrency market. Their Bitcoin ETF, trading under the ticker EZBC, currently holds $756.24 million in assets under management, making it the eleventh largest in its category.
The company has shown interest in Solana since July 2024, stating their belief in developments beyond Bitcoin and Ethereum. They praised Solana’s adoption rate and its progress in addressing technical challenges, highlighting the potential of its high-throughput architecture.
21 Day Review Period
The SEC’s review process includes a 21-day period during which the commission can approve, deny, or extend its decision deadline. This development represents a change in the SEC’s approach to cryptocurrency investment products, following their approval of Bitcoin ETFs in January 2024.
Chris Chung, founder of Solana swap platform Titan, described the SEC’s shift in stance. “The SEC has done a big about-turn on the Solana ETF—from refusing to even entertain such an investment product to acknowledging Grayscale’s amended SOL ETF application,” he told Decrypt in an email.
The timing of these applications comes as Bloomberg analyst Eric Balchunas places the odds of Solana ETF approval at 70%. This estimate sits between Litecoin’s 90% and XRP’s 65% chances of approval. Balchunas noted that these probabilities have increased substantially in recent months, particularly following Donald Trump’s presidential election victory.
Canary Capital’s approach to ETF applications reveals a strategic focus on utility-based tokens. CEO Steven McClurg explained their company’s decision to pursue funds based on Solana, XRP, Litecoin, and HBAR, while avoiding meme coins like Dogecoin.
The SEC has shown increased openness to cryptocurrency products under the new U.S. administration, establishing a dedicated crypto task force led by Commissioner Hester Peirce. Commissioner Peirce compared the regulatory journey to technological advancement, noting that while new technology doesn’t eliminate risks, it can make cryptocurrency investment “a more enjoyable and less risky endeavor.”
Franklin Templeton has also filed for SEC approval to launch a new crypto index ETF. Their current filing limits holdings to Bitcoin and Ethereum, though they’ve indicated potential expansion if additional cryptocurrencies receive regulatory approval.
Earlier this month, Grayscale submitted their Solana ETF application, joining the group of firms seeking approval. The SEC’s acknowledgment of these applications suggests a possible expansion of their framework for crypto products beyond Bitcoin and Ethereum.
The public comment period represents a standard step in the SEC’s review process. During this time, the commission gathers feedback from market participants, industry experts, and the public to inform their decision-making process.
The regulatory landscape for cryptocurrency ETFs continues to evolve, with multiple firms positioning themselves to offer new investment products. The SEC’s current review of Solana ETF applications marks the latest development in this ongoing process.
As of February 12, 2025, the SEC is actively reviewing these applications, with the 21-day comment period now underway.
