American multinational asset management company Franklin Templeton has showered high praises on Solana, triggering widespread speculation about the potential of a Solana ETF in the future.
Franklin Templeton’s Approval Of Solana Sparks ETF Talks
On Wednesday, January 17, Franklin Templeton’s official X account expressed their admiration for the Solana, commending the blockchain network’s progress and continuous developments within its ecosystem.
The asset management company highlighted Solana’s notable accomplishments during the fourth quarter of 2023. Specific mentions were made regarding Solana’s innovative NFT projects over the past months, its impactful presence in the DeFi ecosystem as well as the introduction of new inventive meme coins like Dogwifhat, Myro Popcat, and more. Franklin Templeton also outlined additional achievements like Solana’s next-generation independent validator client, Firedancer, and its innovative DePIN projects.
Although Solana previously experienced a significant decline in its NFT market, the blockchain network’s NFT sales volume witnessed a resurgence after recording a staggering increase recently. On Wednesday, Solana’s NFT volume rose above 92% on the Tiexo marketplace. Furthermore, the blockchain recorded substantial increases on two other prominent marketplaces, Tensor and Magic Eden, respectively.
Overall, Franklin Templeton’s overwhelming praise for the Solana ecosystem was taken with great optimism by the crypto community and SOL supporters. The favorable remarks sparked discussions regarding the potential introduction of a Solana ETF.
Since Spot Bitcoin ETFs gained approval from the United States Securities and Exchange Commission (SEC), many investors, including Ripple CEO Brad Garlinghouse, anticipate the eventual entry of more ETFs into the market.
Presently, the Ethereum Spot ETF stands as the next contender for approval by the SEC. And the final deadline for approving or rejecting several Ethereum Spot ETF applications is slated for May 23, 2024.
SOL price at $98 | Source: SOLUSD on Tradingview.com
Community Members Skeptical About Potential SOL ETF
As excitement spreads in the crypto community over a possible Solana ETF, various crypto enthusiasts express differing views and opinions on its likelihood. It’s important to note that despite the enthusiasm, there has been no official discussion or confirmation of a Solana ETF by the cryptocurrency’s developers or executives.
Concerning a potential Solana ETF, a crypto community member, Lex has highlighted reasons why such a notion might face challenges. In the post, he outlined the SEC’s potential involvement in the decision regarding a Solana ETF. According to the community member, the SEC “would never approve a SOL ETF.”
Another member also provided a more in-depth explanation for the rejection of a Solana ETF, asserting that as the SEC had previously classified Solana as a security, it may not greenlight a Solana ETF unless a court officially declares the cryptocurrency as a non-security.
However, in response to these speculations, Franklin Templeton said:
The lawyers won’t let us respond to comments, but we hear you
Featured image from MEXC Blog, chart from Tradingview.com
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