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Franklin Templeton expresses bullish sentiment on Solana, with comments on major adoption and technological maturation, fueling speculation of a Solana ETF.
The speculation around cryptocurrency exchange-traded funds (ETFs) is intensifying, with Solana being the latest focus. Only a day after Franklin Templeton, a global leader in asset management, launched the Franklin Ethereum ETF (EZET), they went ahead to express bullish sentiments about Solana.
Analyst Ali Martinez highlighted this to his 68,000 followers on X, emphasizing Franklin Templeton’s bullish outlook on Solana.
$1.64 trillion asset manager Franklin Templeton is bullish on #Solana! https://t.co/yqqWY4dChi
— Ali (@ali_charts) July 23, 2024
Franklin Templeton’s recent update noted significant developments beyond Bitcoin and Ethereum, specifically mentioning Solana. The company emphasized Solana’s major adoption and ongoing maturation, overcoming technological challenges and demonstrating the potential of high-throughput, monolithic architectures.
This positive sentiment has fueled speculation about the potential launch of a Solana ETF. For instance, a derivative trader known as Twon went to X suggesting that a Solana ETF could be next, driven by Franklin Templeton’s optimistic view.
$SOL ETF is next but this time it's actually a buy the news event and sol continues to outperform https://t.co/dOB38GXvW2
— Twon | 00.sol (@TwonXBT) July 24, 2024
Major Firms’ Pursuit of Solana ETF
Adding to Franklin Templeton’s stance, VanEck, a notable digital asset manager, already officially filed an application with the U.S. Securities and Exchange Commission (SEC) to list a Solana ETF.
Matthew Sigel, VanEck’s Head of Digital Assets Research, shared this news on X in June. VanEck’s official handle also confirmed the filing, asserting their position as the first asset manager to seek a Solana ETF in the U.S. market.
VanEck’s interest in creating this investment product is due to Solana’s advantageous comparison to Ethereum. The company underscored Solana’s adaptability in various sectors such as trading, gaming, payments, and social interactions. They also pointed out the distinctive advantages of Solana’s blockchain, including its speed, scalability, and cost-efficiency.
Solana Whales are Not Asleep
While the speculation around Solana ETFs grows, significant whale activity has been observed. According to a recent LookOnChain report, in the past two days, two whales withdrew 238,893 SOL, valued at $41.4 million, from Binance and staked it.
In the past 2 days, 2 whales withdrew 238,893 $SOL ($41.4M) from #Binance and staked it!https://t.co/A6AKhPZvZnhttps://t.co/e0ysroHG1x pic.twitter.com/vurGILr9EU
— Lookonchain (@lookonchain) July 24, 2024
The report detailed large transfers involving SOL between different wallets and Binance, indicating a pattern of accumulation. Additionally, substantial minting transactions were observed, with large amounts of SOL being converted into staked tokens through Marinade. This suggests that significant SOL amounts have been consolidated and staked, reflecting confidence in Solana’s future prospects.
As all this goes on, Solana (SOL) is trading at $178.06, marking a 2.53% price increase in the last 24 hours and a 10.87% rise over the past seven days. Despite these gains, the current price remains 31.27% below its all-time high of $259.96.