SEC Action: Franklin Templeton’s XRP and Solana ETF Proposals Move Forward
Big news for crypto investors! The U.S. Securities and Exchange Commission (SEC) has taken a significant step regarding proposed spot exchange-traded funds (ETFs) for two major cryptocurrencies: XRP and Solana (SOL). Asset manager Franklin Templeton is behind these proposals, seeking to list the investment vehicles on the Chicago Board Options BZX Exchange.
SEC Opens Comment Period on Proposed ETFs
In official filings released on Tuesday, the SEC announced it is initiating formal proceedings to consider the proposed rule changes that would allow the Cboe BZX Exchange to list and trade shares of the Franklin Templeton XRP ETF and the Franklin Templeton Solana ETF. This move follows the initial filing by Cboe BZX in March and a subsequent delay by the regulator in April.
It’s important to understand what this step means:
- The SEC is formally reviewing the proposals.
- They are soliciting public comments on the proposed rule changes.
- Instituting proceedings does not indicate the SEC has made a decision yet.
The SEC stated clearly in both filings, “Institution of proceedings does not indicate that the Commission has reached any conclusions with respect to any of the issues involved. Rather, the Commission seeks and encourages interested persons to provide comment on the proposed rule change.”
What Does This Mean for the XRP and Solana ETF Deadlines?
The publication of these notices in the federal register triggers a statutory timeline. This action effectively extends the SEC‘s deadline to either approve or disapprove the Franklin Templeton ETF proposals by 35 days. The new deadline is now pushed into late July. However, it’s worth noting that the SEC retains the ability to delay the decision further at that time if needed.
This process is standard for significant rule change proposals like those for new types of ETFs. While the SEC has already approved spot Bitcoin (BTC) and Ether (ETH) ETFs, the path for other digital assets like XRP and Solana is still being navigated.
The Race for Non-BTC/ETH Spot ETFs
Franklin Templeton is not alone in pursuing these investment products. Several other asset managers and exchanges have also filed proposals with the SEC for listings tied to Solana or XRP. Firms like Bitwise, ProShares, and 21Shares are among those vying to potentially launch the first spot ETFs for these specific cryptocurrencies.
The regulatory environment under the current SEC leadership, particularly regarding digital assets, has seen shifts. While the agency has approved Bitcoin and Ether spot ETFs, its stance on other tokens remains a key point of observation for the market. The outcome of these proposals could set precedents for future crypto ETF applications beyond BTC and ETH.
The Significance for XRP and Solana
For holders and enthusiasts of XRP and Solana, the progression of these ETF proposals is a significant development. A spot ETF can potentially provide a new, regulated avenue for traditional investors to gain exposure to these assets without directly holding the cryptocurrencies themselves. This could theoretically lead to increased demand and broader market acceptance.
However, the process is far from over. The comment period allows the public and industry participants to submit their views, which the SEC will consider. The final decision in July (or later, if delayed again) will be the critical moment.
In Summary
The SEC has officially opened the public comment period for Franklin Templeton’s proposed spot XRP and Solana ETFs. This action extends the decision deadline to late July. While this doesn’t guarantee approval, it marks a necessary step in the regulatory review process and highlights the ongoing interest from traditional finance in bringing regulated investment products for cryptocurrencies like XRP and Solana to market. The crypto community will be watching closely as the comment period unfolds and the new deadline approaches.
