Franklin Templeton ETF Approval Ignites Solana’s 17% Surge

Another day, another ETF green light sends crypto markets scrambling.

Solana rockets 17% as Franklin Templeton—yes, the $1.6 trillion asset manager—gets the nod for its spot Solana ETF. The move signals a seismic shift: institutional money is no longer just knocking on Bitcoin's door; it's kicking down the one next to it.

Why This One's Different

Forget the Bitcoin and Ethereum ETF hype—that's old news. This approval targets Solana, the high-speed blockchain that's been nipping at Ethereum's heels for years. Franklin Templeton isn't some crypto-native upstart; it's a legacy finance giant. Their stamp of approval carries weight with a whole different class of investor—the kind who still uses a fax machine and thinks 'blockchain' is a new type of bike lock.

The Institutional Floodgates Creak Open

This isn't just about one fund. It's a precedent. Regulators are slowly, painfully, learning to tell the difference between a digital asset and a digital Ponzi scheme. The approval paves a regulatory on-ramp for other major players to follow. Expect a wave of 'me-too' filings from competitors who don't want to miss the boat—or in Wall Street terms, the fee-generating asset-under-management gravy train.

A Cynical Take from the Cheap Seats

Let's be real for a second. Wall Street spent years calling crypto a scam. Now they're falling over themselves to package it, slap a 2% management fee on it, and sell it back to you. Some things never change: the suits always find a way to get their cut.

The surge is real, the momentum is building, but remember—in traditional finance, every 'innovation' is usually just a new wrapper for the same old profit motive.

SOEZ is using a grantor trust structure to hold Solana and cash

SOEZ seeks to generally track Solana’s price movements and earn staking rewards on as much of its Solana holdings as feasible, up to 100%, net of expenses and liabilities. The fund’s SOL holdings are valued using the CME CF Solana-Dollar Reference Rate, New York Variant.

David Mann, Head of ETF Product and Capital Markets at Franklin Templeton, added on the fund’s attributes, “SOEZ offers exposure to Solana, a network that has seen significant adoption, and delivers it through a transparent ETP structure that fits seamlessly into existing investment workflows.”

SOEZ also holds Solana and cash through a grantor trust structure. Coinbase Custody Trust Company, LLC serves as the Solana custodian, and BNY acts as administrator, transfer agent, and cash custodian. Bayston further remarked that the fund “provides investors a regulated and transparent way to participate in a network that is shaping how digital infrastructure could operate in the years ahead.”

Aside from SOEZ, Franklin Templeton’s ETP lineup includes Franklin XRP ETF (XRPZ), Franklin Crypto Index ETF (EZPZ), Franklin Bitcoin ETF (EZBC), and Franklin ethereum ETF (EZET).

Solana-focused ETFs saw $13.55 million in net outflows

The ETF launches as Solana experiences unusual trading flows. Last week, Binance recorded $2.12 billion in USDC inflows and SOL outflows of over $1.11 billion. Nonetheless, the shift alleviated exchange sell pressure and boosted potential buy-side liquidity. At the same time, USDT also saw $450 million in outflows.

Lately, SOL has traded up above $120 — a significant level of support. Glassnode data reveals clear clusters of buyers around $135 and $142—levels that now appear as potential resistance. Roughly 17.8 million SOL was accumulated at $142, with another 16 million picked up at $135. Even so, SOL futures activity dipped slightly toward the end of the session, contrasting with the strong volume surges already seen in Bitcoin and Ethereum. That suggests SOL traders are taking a more cautious stance for now.

Solana has consistently ranked as one of the most popular blockchain networks for developers and the deployment of decentralized applications. Investor clusters have accumulated significant amounts of SOL at key support and resistance levels, indicating sustained interest, according to Glassnode data. The network has increasingly drawn institutions, an interest Franklin Templeton is positioning to address via its regulated ETP offering.

The ETF side had similar sentiments, reporting that Solana products saw $13.55 million in net outflows this week, including a sizable chunk ($32.54 million) that was withdrawn from 21Shares’ TSOL fund.

If you're reading this, you’re already ahead. Stay there with our newsletter.