Franklin Templeton Eyes Solana as Next Crypto ETF Offering

The slow start of the ETH ETF has not affected Franklin Templeton’s desire for a new Solana ETF.

Franklin Templeton’s Head of Digital Assets, Roger Baston, expresses his views on the prospects of cryptocurrency investments and highlights Solana (SOL) as one possible new candidate for an Exchange-Traded Fund (ETF).

These reasons, especially the 5% of investors who switched from Grayscale’s products to cheaper options, attributed to these outflows.

Franklin Templeton is Focused on Expanding Access to Cryptocurrencies

In a Bloomberg interview, he said that this is something Franklin Templeton intends to do by way of their investment approach to digital assets. When asked if there had been any disappointment about Ethereum because it did not rally after launching the spot Ethereum ETF among retail investors who were eagerly awaiting this product, Baston responded.

He highlighted that Ethereum might not be as well-known as Bitcoin yet but it still has significant potential because its system can resolve many issues in a decentralized world.

The assets are being made more accessible to investors through brokerage accounts and ETFs. Franklin Templeton Head of Digital Assets also expressed optimism about the future, not just for Ethereum and Bitcoin, but other promising projects in blockchain and digital asset infrastructure.

Read more:- Solana (SOL) vs Avalanche (AVAX): Which is the Smarter Investment for the Rest of 2024?

Solana Spot Potential ETF

Nonetheless, it might be overwhelming, but when asked about Ethereum’s possible complexity for the ordinary investor Baston agreed.

However, he pointed out that those interested in technology-based portfolios may see improved efficiency with decentralized ledger systems like Ethereum.

Likewise, Baston referred to Solana as another network like Ethereum with high growth potential. He talked about needing to evaluate multiple networks and opportunities for diversifying digital assets. Such an approach is consistent with Franklin Templeton’s ongoing evaluation procedure and its willingness to allocate blockchain projects based on their merit as well as demand from investors.

SEC Takes New Stance on Solana

The SEC amended its complaint against Binance, excluding Solana from the list of securities.

This change might mean a change in regulatory views that could open up possibilities of a Solana ETF in line with Franklin Templeton’s prognosis.

BlackRock’s CIO stated they won’t launch more crypto ETFs but acknowledged Bitcoin and Ethereum’s profitability. They are excluding a Solana ETF. This opens opportunities for companies like Franklin Templeton to innovate in the crypto ETF market.

Regarding funds’ flows, ether ETFs received mixed sentiment.

 Ether ETFs began a turbulent week, with some down over 4% due to declining Ether prices. However, certain new funds attracted humongous funds with BlackRock scooping the record $500 million. Bitwise’s ETHW accounts for $276 million, and Fidelity’s FETH contributes $244 million to the other inflows of interest.

Franklin Templeton’s EZET saw a $26 million inflow, indicating rising interest in the company’s products.

On the other hand, we have Grayscale’s product dubbed ETHE which registered huge outflows of $1. As the analysts, character 72B, indicated many people were withdrawing their funds from this investment. These high fees of 2. These outflows are attributed to these reasons, especially the 5% that investors switched from Grayscale’s products to cheaper options.