In Summary
Franklin Templeton files for a Solana ETF with staking, expanding on its earlier Solana Trust proposal this month.
Previous attempts at staking ETFs have been withdrawn, but changing political conditions could favor Franklin Templeton’s proposal.
The SEC’s crypto task force recently discussed staking ETPs, suggesting a potential regulatory openness to the concept.
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Franklin Templeton filed to create a Solana ETF with a staking option today. Earlier this month, they filed for a Solana Trust, and today’s proposal builds upon that initial effort.
Currently, any staking ETF activity under this proposal would be solely at the discretion of Franklin Templeton. However, previous industry attempts to establish a staking ETF in 2024 were withdrawn en masse, but this new effort is very determined.
Will the SEC Approve a Solana ETF?
Since the former president took office in January, the approval of a Solana ETF seems increasingly likely. The SEC has acknowledged a series of related applications in quick succession, and most Polymarket users believe approval in 2025 is highly probable.
However, Franklin Templeton is taking it a step further, attempting to create a Solana ETF with staking.
“The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor (‘Staking Providers’). In consideration for any staking activity in which the Fund may engage, the Fund would receive certain staking rewards of Solana tokens, which may be treated as income,” according to the SEC filing.”
To be clear, the ‘Sponsor’ in the summary refers to Franklin Templeton itself, and they will have full control over the staking process and rewards. While this process is clearly not decentralized, it is still a novel proposal in the ETF space.
Franklin Templeton also filed for a Solana Trust in February, and today’s ETF builds upon the previous application. Last year, several issuers attempted to create a staking Ethereum ETF, but all of these proposals were withdrawn.
However, political conditions are very different in 2025.
First, the SEC’s Crypto Task Force consulted with industry leaders about staking ETPs a week ago. These discussions were more general than a specific staking ETF, but the Task Force has continued a dialogue with other crypto companies.
In addition, Task Force leader Hester Peirce requested further feedback from the crypto industry earlier today.
If Franklin Templeton can create a Solana staking ETF, it could provide a real boost to the underlying asset. SOL has experienced a difficult month, and there are few signs of an immediate price recovery.
However, ultimately, there is no real evidence that the Commission will agree to this request. The Task Force’s recent meeting only concerned staking ETPs, and that is the most optimistic signal for Franklin Templeton.
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