Franklin Templeton Eyes Solana and XRP ETFs Amid SEC Uncertainty

Regulatory Hurdles for Crypto ETFs Grow as Franklin Templeton Expands Offerings

Franklin Templeton, one of the world’s largest asset managers with over $1.5 trillion in assets under management, has officially entered the race for altcoin exchange-traded funds (ETFs), filing for both Solana (SOL) and XRP ETFs. 

The firm submitted a 19b-4 filing for a Solana ETF on March 12, 2025, through the Cboe BZX Exchange, a critical step in the U.S. Securities and Exchange Commission’s (SEC) approval process. This filing closely follows its S-1 registration for an XRP ETF, filed just a day earlier on March 11, as Franklin Templeton expands its crypto ETF ambitions beyond Bitcoin and Ethereum.

Bloomberg ETF analysts have weighed in on the likelihood of various altcoin ETF approvals, giving Litecoin ETFs a 90% probability of approval, Dogecoin ETFs at 75%, Solana ETFs at 70%, and XRP ETFs at 65%. Bloomberg Intelligence analyst James Seyffart acknowledged Franklin Templeton’s move into Solana, stating that while not necessarily surprising, its involvement still carries significance given its stature in traditional finance. 

Following the news, Solana’s price saw a modest increase, once reaching $125.84, signaling a positive market reaction to the firm’s growing interest in crypto-based investment products.

Franklin Templeton’s push for an XRP ETF aligns with a broader trend of major financial institutions seeking SEC approval for spot crypto ETFs. The firm has designated Coinbase Custody Trust Company as the custodian for its XRP ETF, reinforcing a strong regulatory and security framework. 

Other firms, including 21Shares and Grayscale, have also submitted applications for XRP ETFs, demonstrating institutional confidence in the asset despite ongoing legal uncertainties. The SEC has been hesitant to approve altcoin ETFs, recently delaying decisions on multiple filings, including those for Solana, Litecoin, and Dogecoin, as it continues its regulatory scrutiny of digital assets.

The ongoing legal battle between Ripple Labs and the SEC remains a crucial factor in determining the fate of an XRP ETF. Ripple has until April 16, 2025, to respond to the case, adding another layer of complexity to the approval process. A prior ruling by Judge Analisa Torres differentiated XRP from other cryptocurrencies in certain legal contexts, potentially influencing the SEC’s approach to ETF approvals. Despite the regulatory uncertainty, XRP remains widely traded, and institutional interest in an ETF format continues to grow, with many investors seeing it as a way to legitimize and expand the asset’s market presence.

The SEC’s continued delays on crypto ETF approvals are raising concerns about how long it will take for altcoin ETFs to gain regulatory acceptance. While investor sentiment remains optimistic, the prolonged review process leaves uncertainty about when and how these funds will be integrated into mainstream financial markets. Many industry experts believe that the approval of any major altcoin ETF could set a precedent, paving the way for more cryptocurrency-based investment products in the near future.

This article has been refined and enhanced by ChatGPT.