Franklin Templeton Enters Solana ETF Market with SOEZ Launch

Franklin Templeton Debuts Solana ETF

Franklin Templeton, a global investment firm managing over $1.6 trillion in assets, has announced the launch of the Franklin Solana ETF, further intensifying the race to dominate the Solana market. This new Exchange-Traded Product (ETP) offers investors direct exposure to Solana (SOL) token price movements.

Details of the Franklin Solana ETF

The Franklin Solana ETF (SOEZ) is designed to enhance traditional price tracking by incorporating Solana's staking feature. The Fund plans to stake up to 100% of its Solana holdings, allowing it to capture both SOL token price performance and staking rewards. These rewards, distributed as new SOL tokens, are anticipated to be treated as income, potentially boosting investor returns. Staking also contributes to the security and stability of the Solana blockchain. The cash value of the Fund's holdings is assessed using the CME CF Solana-Dollar Reference Rate, New York Variant. The ETF is listed on NYSE Arca.

Industry Insights

David Mann, Head of ETF Product and Capital Markets at Franklin Templeton, emphasized that SOEZ provides exposure to a widely adopted network through a transparent ETP structure. Roger Bayston, Head of Digital Assets at Franklin Templeton, noted Solana's growing role as a fundamental layer of the digital economy.

Solana ETF Market Dynamics

Despite the enthusiasm surrounding SOEZ's launch, the broader Solana ETF market saw net outflows of $32.9 million on December 4, according to Farside Investors. 21Shares' TSOL experienced the largest outflow at $41.8 million, while Bitwise's BSOL attracted the highest inflows of $5.6 million.

Solana Price Action

At the time of reporting, SOL traded at approximately $143.02, reflecting a nearly 10% drop from its late-November high. On November 26, Solana's spot ETFs recorded their first net outflow in 21 days, amounting to $8.1 million. The price decline coincided with discussions on a scarcity proposal that could reduce staking rewards, highlighting short-term volatility amid SOEZ's long-term promise.