thecoinrepublic.com
Franklin Templeton eyes the launch of the Solana ETF to augment its exposure to digital assets. The firm made this revelation at the launch of its second-spot cryptocurrency ETF, the Franklin Ethereum ETF (EZET). The Ethereum ETF, with an initial expense ratio of zero, is listed on the CBOE BZX exchange.
Franklin Templeton Debuts Ethereum ETF
The Franklin Ethereum ETF was launched following the firm’s successful Bitcoin ETF earlier this year. For the first $10 billion in assets, Ethereum ETF fees are exempt until the end of January 2025 at 0.19%. This reflects Franklin Templeton’s plan to woo early investors.
Franklin Templeton’s head of global ETFs, Patrick O’Connor, said in January after the launch of spot Bitcoin ETF (EZBC) he is pleased to bring EZET into the family of digital asset ETFs. This new addition underlines the firm’s strategy to increase its services related to cryptocurrencies. The launch comes as more investors are showing interest in digital assets.
Franklin Templeton Eyes Solana ETF Opportunities
The interest that Franklin Templeton has taken in Solana ETFs is due to the rise in the use of blockchain as well as the relative technological advancement of the network.
The firm’s positive outlook also covers Solana’s high throughput design possibilities. This aligns with the current market shift towards introducing other types of cryptocurrency ETFs.
How about Stellar? Is your team plugged in to recent and upcoming developments in the Soroban space?
— dan.xlm (@Faerbear) July 23, 2024
VanEck and 21Shares have also submitted applications for Solana ETFs, showing market demand. Based on the current analysis, the SEC is expected to respond to all these applications by mid-March 2025. The prospect of a Solana ETF shows that the crypto investment market is constantly expands.
Analyst Predicts Boom in Crypto ETFs
Bloomberg ETF analyst Eric Balchunas opined that Ether ETFs will be followed by more ETFs linked to other cryptocurrencies, such as those based on Solana.
Looks like Solana ETFs are going to have a final deadline of mid-March 2025. But between now and then the most imp date is in November. If Biden wins, these likely DOA. If Trump wins, anything poss. https://t.co/ywkf6oA8Rc
— Eric Balchunas (@EricBalchunas) July 8, 2024
He also believes that if ETH products are admitted into the market, it will open up the market for other ETF-form cryptos. Such an evolution could greatly influence the market structure of digital assets.
Thus, industry representatives have different opinions regarding the possibility of Solana ETF. As for the CME futures market that the SEC often demands, Nic, CEO of CoinBureau, noted its absence. On the other hand, Matthew Sigel from VanEck said that such a market does not need approval.
Firm’s Aggressive Strategy to Capture Market Share
Franklin Templeton’s decision to consider a Solana ETF opens the firm to diversified digital currencies. These actions show that the firm has high expectations from blockchain technologies, which are not limited to Bitcoin and Ethereum. This approach may attract more investors in search of diversified digital asset investments.
The company’s decision to waive fees on the Ethereum ETF is a clear example of the company’s aggressive plan to increase market share. Franklin Templeton intends to attract considerable interest at the beginning of the bond maturity, thus cutting initial investment expenses. It can be used as a future reference for other cryptocurrency ETF launches.
Solana ETFs Could Broaden Investment Scope
The Cryptocurrency ETF market is rapidly evolving and expanding with the number of products. New ETFs, such as the ones for Solana could greatly expand the investment opportunities available. This trend shows the growing recognition of digital assets in various organizations.
The use of cryptocurrency ETFs has been on the rise due to technology and the change in the law. The listing of Solana ETFs can be another proof of the market legitimization. This validation may lead to an increase in the usage and investment of mainstream audiences.