Franklin Templeton seeks SEC approval for Solana ETF incorporating staking rewards
Franklin Templeton seeks SEC approval for Solana ETF incorporating staking rewards
Franklin Templeton is making a bold bid to reshape crypto investing by seeking SEC approval for a Solana exchange-traded fund (ETF) that incorporates staking.
In its recent registration statement, Franklin Templeton outlined plans for the proposed ETF—intended to be listed on the Cboe BZX Exchange—with Coinbase Custody Trust Company, LLC serving as custodian. The filing states that any staking activity undertaken by the fund will yield Solana token rewards, which could be treated as income for the fund. This innovative approach is part of a broader trend within the crypto industry to provide investors with additional yield-generating opportunities without the complexities of direct asset ownership.
Growing support for staking inclusion
The proposal comes amid a wave of regulatory shifts following landmark decisions on spot Bitcoin and Ethereum ETFs. Bloomberg ETF analyst James Seyffart noted, “I think staking will ultimately be allowed for all proof-of-stake assets inside an ETF wrapper—it’s just more a matter of when.” This sentiment is echoed by other market participants, as several firms have recently engaged with the SEC to explore staking integration for their crypto products. Moreover, a letter penned by Senators Cynthia Lummis, Kirsten Gillibrand, and Ron Wyden has urged the SEC to clarify its stance on staking in crypto exchange-traded products, noting that such clarity could pave the way for a more predictable regulatory framework and encourage innovation.
Franklin Templeton’s move is widely seen as a positive signal for the future of crypto ETFs. By potentially enabling staking within an ETF, the firm aims to attract a broader base of institutional and retail investors seeking a more seamless and yield-enhanced exposure to digital assets. As the SEC continues to adjust its policies under new leadership and amidst evolving market pressures, the success of this Solana ETF could set a precedent for future crypto investment products.
Previously, Franklin Templeton launched a Bitcoin and Ethereum index ETF.
