**Updated February 12, 2025: Franklin Templeton Registers Solana Trust**
Asset management firm Franklin Templeton has recently officially registered a trust linked to a Solana spot ETF in the state of Delaware, USA. This move is seen as an important step in the group’s active preparation to launch a Solana ETF.
Solana is currently one of the top five cryptocurrencies by market capitalization, valued at $97 billion, demonstrating its significance and influence in the market.
Several institutions have already submitted applications for a Solana spot ETF to the U.S. Securities and Exchange Commission (SEC), including Grayscale Investments, Bitwise, VanEck, 21Shares, and Canary Funds.
The official documents did not specify which exchange the ETF would be listed on; however, Franklin Templeton’s Bitcoin and Ethereum spot ETFs are currently listed on the Cboe BZX exchange.
The original text from February 11, 2025, is as follows.
**What Happened?**
Bloomberg analysts believe there is a 90% chance that the SEC will approve a spot Litecoin ETF this year, primarily due to the confirmation of its S-1 and 19b-4 forms, and the SEC may classify it as a commodity.
In addition to Litecoin, applications for ETFs for XRP, Solana, and Dogecoin are also underway, with analysts predicting a high likelihood of approval in 2025. This wave of ETF enthusiasm is linked to the successful launch of Bitcoin and Ethereum spot ETFs, as well as former President Trump’s friendly stance towards cryptocurrencies.
The U.S. government’s position on cryptocurrencies has shifted to a supportive one; however, XRP and Solana still face regulatory challenges. XRP is awaiting the outcome of the SEC’s lawsuit against Ripple, while Solana’s securities status also needs to be clarified.
**Bloomberg Analysts: High Probability of Approval for Litecoin ETF**
Bloomberg ETF analysts James Seyffart and Eric Balchunas believe that the SEC has a 90% chance of approving a spot Litecoin ETF this year. They are also optimistic about the applications for other cryptocurrency ETFs, including XRP, Solana, and Dogecoin, predicting approval probabilities of 65%, 70%, and 75%, respectively, for these ETFs in 2025.
NEW: @EricBalchunas and I took a look at the filings for spot crypto ETFs. We’re putting out relatively high odds of approval across the board. Mainly focused on Litecoin, Solana, XRP, and Dogecoin for now.
Here’s the table with the odds and some other details: — James Seyffart (@JSeyff) February 10, 2025
The approval of cryptocurrency ETFs would have significant implications for the market and investors. It not only lowers the investment threshold, allowing more people to access cryptocurrencies, but also provides traditional investors with a more diversified range of investment options.
Through ETFs, investors can participate in the market more conveniently and safely without having to manage wallets and transactions themselves. Additionally, the expected approval of ETFs is anticipated to promote market development, increase market awareness, and strengthen market regulation, thus driving the overall development of the cryptocurrency industry.
Since their launch in January and July 2024, the net inflows into Bitcoin and Ethereum spot ETFs have reached $40.7 billion and $3.18 billion, respectively. With the successful launch of Bitcoin and Ethereum spot ETFs, coupled with Trump’s friendly attitude towards cryptocurrencies after taking office, many experts and investors are actively monitoring the next wave of potential ETF applications for cryptocurrencies.
Given that the S-1 and 19b-4 forms for Litecoin have been submitted and confirmed, and that the SEC may classify it as a commodity, it stands as the cryptocurrency most likely to receive approval among this batch of applications.
Although James Seyffart believes the appeal of a Litecoin ETF may not match that of Bitcoin and Ethereum in their respective years, he stated that for the issuing company, an inflow of $50 million would already be quite worthwhile.
**Final Decision Deadline This Year: The Era of Large ETFs Approaches?**
The final decision deadline for the SEC regarding the ETF applications for Litecoin, Solana, XRP, and Dogecoin will fall between October 2 and October 18. James Seyffart indicated that the Litecoin ETF might be launched before this deadline.
Additionally, Canary Capital and 21Shares have submitted ETF applications for Hedera (HBAR) and Polkadot’s DOT, but analysts have not assessed the approval probabilities for these.
James Seyffart anticipates that more cryptocurrency ETFs will be proposed in the future, and ETF issuers in the U.S. may even adopt a “scattershot” strategy, launching various products to see which ones gain market popularity.
He believes that in the long run, there may be a large number of ETFs holding digital assets in the market, while those that fail to attract attention or inflows could be liquidated. Balchunas pointed out that, aside from Litecoin, the probability of approval for other cryptocurrency ETFs is below 5% before the U.S. presidential election. However, after Trump’s election, the U.S. government’s stance has shifted to a more supportive position towards cryptocurrencies, which suggests that previous regulatory barriers hindering the development of the digital asset industry may be eliminated.
**Regulatory Environment Changes, Yet XRP and Solana Still Face Challenges**
Despite the regulatory environment becoming more friendly, there remain issues to be resolved for XRP and Solana.
James Seyffart predicts that XRP’s ETF is unlikely to receive approval until the SEC’s lawsuit against Ripple is fully resolved. Ripple achieved a partial victory in August 2023 when a court ruled that XRP does not constitute a security when sold on the secondary market. However, the SEC has appealed this ruling, claiming that Ripple violated securities laws by selling XRP to retail investors. Currently, Ripple hopes that the new SEC leadership can dismiss this case.
Moreover, Solana’s securities status also needs to be addressed for the SEC to analyze it under the “commodity ETF” framework.
Regardless, analysts believe that the likelihood of multiple cryptocurrency ETFs receiving SEC approval is increasing, reflecting the growing market demand for digital asset investment products and potential changes in the regulatory environment.
References: cointelegraph, the block