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Canary Capital Files For Staked TRX ETF Approval With The SEC To Maximize Yield

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  • Canary Capital submits S-1 filing for Staked TRX ETF with SEC.
  • ETF aims to hold TRX tokens and stake them for additional yield.
  • SEC’s regulatory stance on staking crypto in ETFs remains uncertain.

Canary Capital, a U.S.-based asset manager, has filed an application for an exchange-traded fund (ETF) that will hold and stake TRX ,the native token of the Tron blockchain. The ETF aims to offer investors exposure to TRX market prices and produces additional yield by staking tokens. The application was submitted to the U.S. Securities and Exchange Commission (SEC) on April 18.

Staked TRX ETF Structure

The Canary Staked TRX ETF will hold spot TRX tokens and stake some of its assets to generate additional yield. BitGo Trust Company, a renowned crypto custodian, will manage the custody of the tokens. The ETF will track the TRX’s spot price index through CoinDesk Indices although its ticker symbol and management fee details remain undisclosed.

Canary Capital proposes this ETF amid a growing trend of alternative cryptocurrency ETFs. These filings provide institutional investors with a new set of investment options for better portfolio diversification. Unlike other U.S based crypto ETFs applications, the Canary Staked TRX ETF filing incorporates a staking feature.

Regulatory Barriers For Crypto Products Staking

Staking, a core element in Proof-of-stake (PoS) networks like Tron, faces regulatory obstacles in the U.S. The SEC has opposed staking in crypto-related products due to redemption and tax treatment concerns . The commission has raised questions about whether staking services could be classified as unregistered securities. These regulatory problems have caused delays in the approval of similar products such as Ethereum ETFs.

U.S-listed crypto ETFs continue to pursue staking in their operations despite regulatory barriers. In recent months ,the SEC and the crypto industry have held discussions to develop models to address the identified concerns. The use of third-party providers for staking and issuance of liquid staking tokens could enable compliance with the SEC’s settlement cycles and compliance requirements.

Altcoin ETF Trend

In 2024 multiple applications for altcoin ETFs such as Solana (SOL), XRP and Litecoin (LTC) proposals have been filed for approval. However, the industry remains skeptical about the acceptance of non-core cryptocurrency products by traditional investors although these products demonstrate the increased adoption of digital assets in mainstream finance.

The Canary Staked TRX ETF submission comes amid legislative and regulatory discussions about cryptocurrency and staking protocols. In February, U.S. senators including Cynthia Lummis requested the SEC to publish their position on staking of crypto products. The senators noted that the current policies limit U.S. asset managers compared to international competitors especially in Europe, Canada and the UK.

The TRX ETF submission follows other similar applications from Grayscale which filed for staking in Ethereum ETFs. However, the SEC has prolonged the review and approval process of these requests. This outcome of this process could determine the future of staked crypto ETFs.

TRON Joins ETF Race as Grayscale Adds TRX to Future Products

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  • Grayscale added TRON (TRX) to its “Future Investment Products” list, sparking TRX ETF speculation, as noted by Justin Sun.
  • Despite a market downturn, TRX is outperforming many top 100 tokens, consistently trading above its 200 EMA year-to-date.
  • Grayscale will update its list quarterly, reflecting the dynamic crypto market and potential new single-asset product launches.

Leading asset manager Grayscale Investments has added TRON (TRX) to its list of “Future Investment Products,” fueling ETF speculation. Following the publication, TRON founder Justin Sun commented, “Happy to see TRX on the Grayscale list, and the competition for a TRX ETF is getting more and more intense.”

Besides TRX, the list also includes Aptos (APT), Arbitrum (ARB), Berachain (BERA), Celestia (TIA), Hedera Hashgraph (HBAR), Toncoin (TON), and VeChain (VET). These digital assets already exist within Grayscale’s current investment products.

To organize its portfolio, the AUM has created its own framework, classifying assets into categories like “Currencies,” “Smart Contract Platforms,” “Financials,” “Consumer & Culture,” and “Utilities & Services.”

Grayscale, in its report, aims to update these lists quarterly, i.e., within 15 days after the end of a quarter. This aligns with the evolving crypto market and their ongoing asset review process. The current list is as of April 10, 2025, and is subject to change. The report also added that the lists might change within a quarter due to factors like multi-asset fund rebalancing and the launch of new single-asset products.

For TRON proponents, Grayscale’s announcement is significant as it signals potential interest in offering TRX-focused funds such as ETFs, intensifying competition in the space.

TRON Price Strength Continues Above Key EMA

On the price front, TRX has defied the current market downturn and is among the few tokens in the top 100 to be consistently above the 200 EMA. The ninth-ranked token is also quietly outperforming its peers, almost everything YTD.

TRON
Source: Tang

As one analyst quoted, “The entire market is losing momentum, but it’s still making higher lows. One of the few in a constant uptrend since inception. Keep an eye on such tokens, as once the market bounces, they’ll run hard.” Another expert notes that if Chinese capital returns to Bitcoin ($BTC), the TRON ecosystem might also see inflows.

Nasdaq Files for VanEck Avalanche ETF to Track AVAX Token

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  • Nasdaq applies to list VanEck’s Avalanche ETF under SEC rules.
  • ETF will track AVAX price without investors holding tokens.
  • VanEck joins Grayscale in launching crypto-backed Avalanche ETFs.

Nasdaq submitted an application to the SEC to list the VanEck Avalanche ETF, which aims to provide investors with indirect access to AVAX tokens. The recent application marks a major step for Nasdaq’s expansion in the spot crypto product sector. If approved, the ETF will enable investors to track the price of the AVAX token without direct token ownership.

The VanEck Avalanche ETF seeks to hold tokens in trust to track the price of AVAX. VanEck Digital Assets will sponsor the trust, while a third institution will provide secure custody of the tokens. The ETF allows investors to access and track the AVAX price without the need for cryptocurrency wallets or trading platforms.

VanEck’s Crypto ETF Portfolio

VanEck continues to pursue the registration of spot crypto ETF products in the United States. On March 10, The company registered the product as a corporate trust service company in Delaware. The AVAX ETF application is the fourth independent crypto ETF application filed by VanEck with the U.S. Securities and Exchange Commission for Bitcoin, Ether, and Solana ETFs.

In March 2024, VanEck filed its first Solana-based ETF application, which made it one of the first issuers in the SOL ETF race. The firm demonstrates its dedication to crypto-based ETFs with the latest Avalanche ETF application. On March 14, VanEck announced their product application on social media channels.

Competitive Avalanche ETF Race 

Grayscale Investments also plans to launch its AVAX-backed ETF, as Nasdaq already submitted the application to list the product on March 28. Grayscale plans to convert its AVAX fund, launched in August 2024, into this new ETF. The competition between VanEck and Grayscale shows the increased demand for AVAX-backed investment products.

Exchange-traded products linked to AVAX have gained momentum, although the token faced market hurdles. The price of AVAX traded at $18.00 on April 10 after a 56% decrease from its $41.00 peak in January. The broader crypto market decline has reduced AVAX’s value, which signals potential volatility for the token in 2025.

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Nasdaq Files for VanEck Avalanche ETF to Track AVAX Token 3

Altcoin ETFs Attract Massive Interest

The Nasdaq filing is part of the race between asset managers to launch altcoin ETFs. Nasdaq recently submitted an application to the SEC to list Grayscale’s Avalanche ETF as well as other altcoin products. Additionally, asset managers have filed applications for ETFs linked to Solana, Dogecoin, Polkadot, and Cardano, which shows improved regulatory conditions.

VanEck’s recent applications show the increased market demand for altcoin ETFs. The company filed for a Binance Coin ETF in March, which makes it the first asset manager to offer such a product in the U.S. The future of the cryptocurrency market depends on SEC regulation as more asset managers join the crypto ETF race.

Bitcoin ETFs See $172M Weekly Outflows Amid Market Drop

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  • U.S. spot Bitcoin ETFs saw $172.89 million in outflows last week amid a broader crypto sell-off, ending two weeks of strong inflows.
  • Investor confidence was shaken by President Trump’s new “Liberation Day” tariff strategy, contributing to a sharp drop in crypto markets and ETF investments.
  • While most ETFs faced losses led by Grayscale’s $95.5M outflow, some funds like Franklin Templeton and Fidelity bucked the trend, recording $61.8M in net inflows.

U.S. spot Bitcoin exchange-traded funds (ETFs) recorded significant outflows last week, shedding $172.89 million as heightened trade tensions and a broad crypto market sell-off rattled investor confidence.

The latest data from SoSoValue reveals that investor withdrawals from all 12 spot Bitcoin ETFs reached $172.89 million last week following two positive weeks of taking in $941 million. A wave of money left the exchange-traded funds during four days between March 31 and April 4 as market turbulence increased after President Donald Trump unveiled his new tariff strategy named “Liberation Day” duties.

On Tuesday the funds saw $157.64 million in cash withdrawals, and the movement continued through Thursday with $99.86 million and then Friday at $64.88 million. Monday started with $71.07 million in fund liquification before Wednesday generated a $220.76 million influx.

Bitcoin ETFs Struggle Amid Major Fund Losses

Grayscale’s Bitcoin Trust (GBTC) experienced the largest fund withdrawals, losing $95.5 million in a week. WisdomTree’s BTCW reported $44.6 million less money in its funds than BlackRock, Bitwise, ARK 21Shares, and VanEck, which faced $35.5 million, $24.1 million, $22.2 million, and $4.9 million in withdrawals, respectively.

Despite this trend, several investment funds managed to resist the downward movement. Grayscale’s spot Bitcoin Trust and Two BTC funds from Franklin Templeton and Fidelity received $61.8 million in deposits despite other funds losing money. The rest of the ETFs stayed at their balance without any changes during the week.

Market participants pulled back from investing in all types of Bitcoin products during the period. Over the last six weeks, Ethereum ETFs received $49.93 million less in investments for a total withdrawal of $795 million.

Bitcoin took its worst quarter since 2018 while traders showed decreased market confidence due to Trump’s tariff announcement. The new trade program adds a 10% duty on all imports plus stronger tariffs for specific major trading partners, leading investors to worry about another worldwide trade war.

In the last 24 hours the whole cryptocurrency market declined by 10% as of our current update. According to BitMEX co-founder Arthur Hayes, Bitcoin lost 9.3% of its value by falling below $76,500, which marked a crucial support point that he identified as necessary to avoid further price drops.

Grayscale Files for SEC Approval to Convert Digital Large Cap Fund into ETF

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  • Grayscale files for SEC approval to convert Digital Large Cap Fund into an ETF.
  • Grayscale’s proposed ETF includes top cryptocurrencies like Bitcoin, Ethereum, and XRP.
  • Grayscale aims to merge digital assets with traditional investments via ETF approval.

Grayscale Investments has applied to launch a new exchange-traded fund (ETF). On April 1st, the asset manager submitted an S-3 form to the U.S. Securities and Exchange Commission (SEC) to convert its Digital Large Cap Fund into an ETF. The new investment platform will offer investors an easy way to buy top cryptocurrencies by integrating Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA).

Grayscale’s Strategy to Integrate Crypto with Traditional Investments

The proposal adopted by Grayscale supports the company’s goal to incorporate digital assets into standard financial market operations. The company leads the creation of financial products to connect traditional investments with cryptocurrencies. The asset manager implemented this change after successfully converting its Bitcoin and Ethereum Trusts to spot BTC and ETH ETFs during the early months of 2024. This ETF conversion of the Digital Large Cap Fund from the asset manager provides investors access to a regulated portfolio of major digital assets through a more diversified investment solution.

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Source; SEC

The fund’s portfolio includes Bitcoin, the largest cryptocurrency by market capitalization, which holds a dominant 79.4% of the fund’s assets. Ethereum is second with 10.69%, while XRP, Solana, and Cardano comprise the remaining sectors. Shareholders can access various dominant digital assets through a single ETF, which provides investment opportunities across the entire cryptocurrency market.

Grayscale’s ETF Moves Reflect Growing Trend in Altcoin Investments

Grayscale’s filing is part of a broader trend in the investment world where multiple asset managers launch ETFs focused on altcoins. In addition to Grayscale firms, Canary Capital, 21Shares and Bitwise pursue investment opportunities within the altcoin market. The planned XRP ETF from the asset manager attracts more attention as the Ripple court case approaches its end, which would likely escalate XRP-based fund demand.

Through other ETF filings for Avalanche (AVAX) and Polkadot (DOT), the company demonstrates its dedication to broadening its product range. The asset manager’s recent actions have boosted the confidence of cryptocurrency investors who seek alternative investments in altcoins. The company’s AVAX ETF listing at Nasdaq indicates that institutions show significant interest in investing through altcoin-based ETFs.

Grayscale Goes All-In on Avalanche — What It Means for AVAX Holders

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  • Nasdaq files for a Grayscale AVAX Trust ETF, potentially boosting institutional adoption by offering a regulated entry point, and countering competition.
  • Grayscale’s AVAX Trust, with a 2.5% fee, highlights Avalanche’s role in RWA tokenization and joins Grayscale’s expanding crypto portfolio.
  • AVAX shows bullish technicals, rivaling Ethereum’s speed, with analysts predicting a demand surge, despite recent price volatility.

Avalanche’s adoption is poised for a boost after Nasdaq files Form 19b-4 with the US SEC to apply for listing shares of Grayscale AVAX Trust, as per the official document.

This move could elevate institutional confidence, providing a regulated entry point. If this ETF listing gets the green light, it might counterbalance the competition, driving broader adoption and ecosystem strength.

The potential ETF would directly hold AVAX tokens. Grayscale would oversee the ATrust with a 2.5% fee. A major crypto asset manager, Grayscale, is a known player in the ETF scene. Other firms, like VanEck, are also pursuing Avalanche ETF listings.

This trust highlights Avalanche’s key role in RWA tokenization and adds to Grayscale’s growing portfolio, which already includes $BTC, $ETH, and $SOL. With recent expansions into $TAO, $SUI, and more, Grayscale is pushing the boundaries of crypto investing.

Avalanche
Source: @tradescoutxx

As for Avalanche, the token rivals Ethereum with faster transaction finality. Market observers expect the token’s demand to rise. Following the development, AVAX’s technical price chart has formed a bullish structure, showcasing resilience compared to other altcoins.

Avalanche: Bullish Outlook vs. Current Price Drop – What’s Next?

Experts highlight a strong support level, with barely any pullbacks. The key factor rests on BTC breaking out from 88k. If momentum is sustained, one can see $AVAX rise above $30 in no time.

Market analysts see the token’s potential to reach the top 10 soon.

One of the cleanest charts on the market at the moment Took out previous low and looks to be putting in a double bottom on HTF Overall very bullish structure being formed at the moment and it’s showing a lot of relative strength in comparison to other alts

Despite the bullish outlook, AVAX’s price is down 6.69%, at $20.42, in the daily index. While bearish trends persist, strategic partnerships and network expansion paint a bullish future. Traders should brace for volatility, though—it’s not a smooth ride yet!

Nasdaq Files 19b-4 for Grayscale’s Hedera ETF Approval

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  • Grayscale’s Hedera ETF to track HBAR price on Nasdaq exchange.
  • Hedera governance involves top companies like Google and IBM.
  • SEC approval process for crypto ETFs gains momentum with filings.

Nasdaq has submitted a key 19b-4 filing to the U.S. Securities and Exchange Commission (SEC) to list Grayscale’s spot Hedera exchange-traded fund (ETF). This filing is part of a two-step process for a crypto ETF proposal. Once acknowledged by the SEC, the filing will be published in the Federal Register, to start the approval process.

Grayscale Files for Hedera ETF

Grayscale, a major player in the crypto investment space, aims to expand its product offerings with the Hedera ETF. The company’s goal is to create an ETF that tracks the price of HBAR and provides investors with exposure to the asset without holding it directly. If approved, the Hedera ETF will trade on the Nasdaq exchange, which will add another product to Grayscale’s portfolio.

Grayscale Hedera ETF
Nasdaq Files 19b-4 for Grayscale’s Hedera ETF Approval 7

The 19b-4 filing is a crucial step for any crypto ETF proposal as it marks the beginning of the approval process with the SEC. Although Grayscale is pushing forward with its Hedera ETF, it is not the first company to file for an HBAR ETF. This positions the Hedera ETF as a competitive product in the growing market.

This filing follows a similar move from Canary Capital, which submitted a 19b-4 for its spot HBAR ETF the previous week. Bloomberg Senior ETF Analyst Eric Balchunas has suggested that Hedera and Litecoin are leading the race of altcoins for ETF approval. This indicates significant progress in the SEC’s consideration of alternative crypto assets for ETF inclusion.

Hedera is a decentralized public network utilizing the Hashgraph consensus algorithm. The network is governed by a council of prominent organizations like Google and IBM. The Hedera token, HBAR, plays a central role in facilitating transactions across the network. 

ETF Race Intensifies

This move follows Grayscale’s earlier filings for ETFs focused on other cryptocurrencies such as Cardano, Solana, and XRP. Grayscale has a strong track record with the SEC because it successfully argued for the approval of spot Bitcoin and Ethereum ETFs in recent months. This success has enhanced the firm’s confidence in securing approval for its altcoin-based ETFs.

Other asset managers, such as Rex-Osprey and Tuttle Capital, are seeking SEC approval for crypto ETFs, including Dogecoin. The approval prospects for major altcoins like XRP and Solana looks promising but the likelihood of memecoin ETFs gaining approval remains uncertain. The SEC’s recent approach to crypto regulation, including the resolution of the Kraken lawsuit, has left the industry hopeful for more positive developments.

More filings are expected in the coming months especially with changing SEC stance on crypto ETFs. The outcome of these filings will have major implications for the future of crypto ETFs and broader market access for investors. Additionally, these filings mark an important step forward for the crypto investment ecosystem.

However, HBAR’s market performance has struggled, showing a 14.5% drop in the past 24 hours and currently trades at $0.22.

SEC Reviews Grayscale’s Ethereum ETF Staking Proposal: Bold Decision Expected by May 2025

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  • SEC’s decision on Grayscale’s staking proposal expected by May 2025.
  • Ethereum ETFs could offer staking rewards, boosting investor returns.
  • Grayscale’s staking proposal follows growing interest in crypto ETFs.

The U.S. Securities and Exchange Commission (SEC) is reviewing a proposal by NYSE Arca to allow staking within Grayscale’s Ethereum Exchange-Traded Funds (ETFs). The proposal, filed on February 14, 2025, seeks regulatory approval to enable Grayscale’s Ethereum Trust ETF and Grayscale Ethereum Mini Trust ETF to stake Ethereum tokens. 

Grayscale Seeks Approval for Staking in Ethereum ETFs 

Grayscale’s proposal would enable both ETFs to stake Ethereum through trusted providers, earning staking rewards. The funds will maintain their current custody arrangements with Coinbase Custody to secure their Ethereum holdings. 

The SEC is expected to make a decision before May 26, 2025, following a public comment period and a review process.

Grayscale Ethereum ETF Filing
SEC Reviews Grayscale’s Ethereum ETF Staking Proposal: Bold Decision Expected by May 2025 9

The staking process would be managed exclusively by the ETF’s sponsor, ensuring that staked Ethereum is not pooled with other entities or marketed as a staking service. The funds aim to generate additional returns for investors without changing the structure of the current ETFs.

The SEC’s review process includes an initial 45-day public comment period, which could extend up to 90 days. If approved, the change could provide Ethereum ETF investors with additional returns from staking rewards. Grayscale’s move follows previous efforts in 2024 to introduce staking to its Ethereum ETFs, which faced regulatory hurdles that delayed approval.

SEC Poses Regulatory Hurdles to Crypto ETF Staking

In March 2024, Grayscale proposed a similar staking structure after Fidelity filed a similar proposal. However, regulatory challenges delayed approval, and the SEC raised concerns about whether staking qualifies as an investment contract under U.S. securities laws.

The SEC has expressed increased interest in staking and has engaged with industry experts to better understand its implications. Recent reports suggest that the SEC continues to seek insights on staking to determine its regulatory approach. 

This could also influence the agency’s approach to other staking-related cases, such as the lawsuit against ConsenSys over its MetaMask staking service.

ETF Staking Gains Momentum 

Moreover, Cboe BZX Exchange has filed for public comments on a similar proposal related to the 21Shares Core Ethereum ETF. This proposal seeks to allow the ETF to stake Ethereum and generate additional returns for investors without pooling or delegating the staking activities. These proposals reflect the growing interest in staking within Ethereum ETFs as a means to offer added value to investors.

The SEC’s decision on these proposals could set a significant precedent for the future of Ethereum ETFs. Staking, a process where cryptocurrency holders earn rewards by participating in blockchain validation, offers investors an opportunity to benefit from staking rewards.

SEC Acknowledges Application to List Grayscale’s Cardano ETF

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  • SEC begins review of Grayscale’s spot Cardano ETF filing.
  • Grayscale seeks to list Cardano ETF on NYSE Arca exchange.
  • Grayscale aims to expand crypto ETF offerings with Cardano.

Grayscale has filed for a spot Cardano ETF, and the U.S. Securities and Exchange Commission (SEC) has acknowledged the application. This development signals the start of the SEC’s review process for the Grayscale Cardano Trust. The approval would allow the ETF to be listed and traded on the New York Stock Exchange (NYSE) Arca.

Grayscale Cardano ETF

The Grayscale Cardano ETF aims to offer investors regulated exposure to Cardano (ADA). If approved, the ETF would provide investors with shares that represent fractional ownership in the Grayscale Cardano Trust. The ETF will track the price of Cardano through an index based on prices from various crypto exchanges, including Coinbase and Crypto.com.

SEC Cardano ETF
SEC Acknowledges Application to List Grayscale's Cardano ETF 12

Grayscale’s proposal to list the ETF follows a similar application filed by NYSE Arca on February 10. The exchange intends to list and trade the Grayscale Cardano Trust’s shares on its platform. Investors will not directly hold ADA but will own shares in the trust, which is designed to provide indirect exposure to Cardano.

Coinbase Custody Trust Company will act as the custodian for the proposed ETF while BNY Mellon Asset Servicing will manage the fund’s transfer and administration.

The index will be listed on crypto exchanges such Coinbase and Kraken due to their compliance with U.S. federal and state licensing requirements. Although Bitfinex does not hold any licenses in the U.S, it was included because it met the minimum liquidity requirement.

Cardano ETF
SEC Acknowledges Application to List Grayscale's Cardano ETF 13

Grayscale’s decision to file for a Cardano-based ETF is part of its broader plan to expand its cryptocurrency ETF offerings. The firm has also filed ETFs for other major digital assets, such as Solana (SOL), XRP, and Litecoin (LTC). 

Regulatory Shift

The SEC’s acknowledgment on February 24 begins the official review of Grayscale’s application. Although this is the first step in the approval process, it signals the SEC’s readiness to evaluate the proposal. The commission will now assess whether to approve or reject the listing of the ETF.

This move comes at a time when there is a shift in cryptocurrency regulations, following the appointment of new leadership at the SEC under acting chair Mark Uyeda.

Crypto ETF Trend

This filing is part of a broader trend of increasing ETF applications in the cryptocurrency space. Recently, Nasdaq also sought approval for an ETF linked to Hedera Network’s HBAR token. Multiple filings for crypto ETFs have been submitted to the SEC in recent weeks, with several applications covering different aspects of crypto investment, including staking and altcoins.

Grayscale’s Cardano ETF application represents a significant step for both the company and the broader cryptocurrency market. As the SEC evaluates these applications, the industry watches closely for signs of a more favorable regulatory environment. The outcome of this review could pave the way for more crypto assets to be traded through traditional financial channels.

Franklin Templeton Files for Solana ETF: A New Era for Crypto Investment

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  • Franklin Templeton files for Solana ETF with Coinbase custody.
  • ETF will enable staking rewards and fractional Solana ownership.
  • Regulatory shifts may impact the future of crypto ETF products.

Franklin Templeton has filed for a Solana exchange-traded fund (ETF).This fund promises unique features such staking rewards, fractional ownership and crypto exposure for institutional investors.

Franklin Templeton’s Solana ETF

Franklin Templeton has filed for a Solana exchange-traded fund (ETF), which will primarily hold Solana as its asset. The fund will store its Solana holdings securely under Coinbase Custody Trust Company. Additionally, it will maintain a separate custodian for cash holdings and continuously issue and redeem shares in large blocks known as Creation Units.

The ETF will offer investors fractional ownership of Solana through its shares. These shares will be issued and redeemed through transactions made in Solana, cash or  both. 

Solana ETF
Franklin Templeton Files for Solana ETF: A New Era for Crypto Investment 15

Shares of the Franklin Solana ETF will be listed on the Cboe BZX Exchange under an undisclosed ticker symbol. Even though the fund’s net asset value (NAV) will be tied to the Solana price, its share market price may fluctuate. 

Only institutional investors, known as Authorized Participants, will be able to directly buy or redeem Creation Units, but retail investors can buy shares on the exchange.

Demand for Crypto ETFs Soars

Franklin Templeton joins the broader trend for increased momentum for crypto ETFs in traditional finance.The ETF aims to attract institutional and retail investors seeking exposure to Solana. Investors will benefit from the security and liquidity of a regulated exchange as well as tap into Solana’s potential in the market.

Several other firms have filed requests to launch Solana ETFs. The SEC continues to review multiple Solana ETF proposals from firms such as VanEck and Canary Capital. Additionally, the SEC is poised to approve several spot Ethereum ETFs which reflects the growing demand for crypto-related financial products among institutional investors.

Earlier this month, Grayscale Investments launched a fund tied to Dogecoin which illustrates the increased diversification of crypto portfolios. Franklin Templeton’s Solana ETF offers investors another option to diversify their digital asset portfolios. 

Staking Gains Momentum in ETF Space

The proposed ETF allows staking a portion of its Solana holdings to earn rewards, which may be treated as income for the fund. This could set a precedent for future crypto investment products that incorporate staking.

Industry experts expect that staking will eventually be allowed for all spot ETFs. James Seyffart, a Bloomberg ETF analyst, believes staking will ultimately be permitted for proof-of-stake assets in ETFs. 

Furthermore, U.S. lawmakers have called for more clarity from the SEC about staking in crypto products. This shift in regulatory policies could provide clearer guidelines for crypto ETFs and encourage innovation within the sector.

The success of this ETF could influence future crypto ETFs and investment strategies in the digital asset market.