Franklin Templeton Joins Solana ETF Race: A Game-Changer for SOL

The race for a Solana (SOL) ETF is heating up, and Franklin Templeton has just thrown its hat into the ring. The global investment giant has filed documents in Delaware to register the Franklin Solana Trust, marking a significant step toward launching a spot Solana ETF. This move comes hot on the heels of similar filings by VanEck, Grayscale, and Canary Capital, signaling growing institutional interest in Solana. But with SOL’s price down 3.34% in the last 24 hours and 9.99% over the past week, is this ETF momentum enough to reverse the bearish trend? Let’s break it down.

Institutional Adoption Heats Up
Franklin Templeton’s entry into the Solana ETF race is a major vote of confidence for the blockchain platform. Known for its high-speed transactions and low fees, Solana has become a favorite among developers and users alike. Now, with institutional heavyweights like Franklin Templeton, VanEck, and Grayscale vying for a Solana ETF, the cryptocurrency is poised to gain even broader recognition.

Key Developments:
1. Franklin Solana Trust:
Franklin Templeton’s filing in Delaware is the first step toward launching a spot Solana ETF. While the SEC has yet to approve any Solana ETF, the growing number of applications highlights the asset’s potential.

2. SEC’s Stance:
The SEC has acknowledged filings from Grayscale and Canary Capital, opening a 21-day public comment period. However, Solana’s classification as an unregistered security remains a hurdle. Analysts suggest that Litecoin and Hedera ETFs might have a better chance of approval due to their clearer regulatory standing.

3. Franklin’s Crypto Index ETF:
Franklin Templeton has also filed for a **Crypto Index ETF**, which initially tracks Bitcoin and Ethereum but could expand to include other altcoins like Solana. This shows the firm’s long-term commitment to the crypto space.

Technical Analysis
Despite the bullish news, Solana’s price action tells a different story. Here’s what the charts are saying:

SOL is currently trading at $195, down 2.36% in the last 24 hours. The token has struggled to maintain momentum, with a 9.99% drop over the past week.The Relative Strength Index (RSI) is in bearish territory at 41, indicating that selling pressure outweighs buying interest. This suggests that SOL could face further downside before finding support.

If Bitcoin dips to $90,000, SOL could test the $180–$160 zone, a critical support area. However, a breakout above $240 (38.2% Fibonacci retracement level) could reignite bullish momentum, potentially pushing SOL toward its all-time high of $270.

Solana’s 24-hour trading volume is down 14.03% to $3.81 billion, despite its $95.94 billion market cap. This divergence suggests that retail interest may be waning, even as institutional demand grows.

Conclusion
Franklin Templeton’s entry into the Solana ETF race underscores the growing institutional interest in the blockchain platform. While the current price action is bearish, the potential approval of a Solana ETF could be a game-changer, driving SOL to new heights. For now, investors should keep an eye on key support and resistance levels, as well as regulatory developments.

Will Solana break out of its slump and reclaim its all-time high? Only time will tell, but one thing is clear: the race for a Solana ETF is just getting started.