Franklin Templeton & Grayscale Bet Big on Solana: $60B Staking War Chest Fuels ETF Race

Crypto heavyweights just shoved their chips onto Solana's table—hard. Franklin Templeton and Grayscale are leading the charge for a SOL ETF, armed with a staggering $60 billion staking provision that could reshape the market.

Wall Street's playing catch-up...again

While TradFi scrambles to understand proof-of-stake, these firms are locking up SOL like it's going out of style. That $60B staking war chest? That's not just dry powder—it's a direct challenge to Ethereum's dominance in the institutional arena.

The ETF land grab gets spicy

Grayscale's move smells like a revenge play after their Bitcoin ETF saga, while Franklin Templeton clearly wants a slice of the next-gen blockchain action. Question is: will regulators finally wake up and smell the decentralization?

Closing thought: Nothing unites finance bros like the scent of fresh fees waiting to be extracted from a new asset class. Solana's tech may be fast—but Wall Street's profit engines are faster.

What to Know:

• Seven asset managers filed amended S-1 registration statements for Solana ETFs with updated staking and custody provisions on August 1
• Grayscale's proposal includes a 2.5% annual fee structure while VanEck incorporates active staking rewards and dual custodianship
• Solana's price dropped over 3% to $170.24 following the news, suggesting the development may already be factored into current valuations

Regulatory Strategy Takes Shape

The amendments reflect a strategic response to SEC expectations established through recent Bitcoin and Ethereum ETF approvals. Asset managers have incorporated in-kind redemption structures similar to those approved for existing cryptocurrency ETFs. These changes demonstrate how firms are adapting their proposals based on regulatory feedback received during the review process.

Market analysts suggest the coordinated timing of these filings indicates ongoing dialogue between asset managers and SEC officials. The revised applications address concerns about custody arrangements and operational mechanics that regulators have flagged in previous cryptocurrency ETF reviews.

Financial experts believe this approach increases the likelihood of eventual approval.

Industry observers expect a regulatory decision could emerge by late August or September 2025. The timeline aligns with the SEC's typical review periods for complex financial products requiring extensive regulatory scrutiny.

Market Response and Technical Analysis

Solana's price declined more than 3% to $170.24 following the ETF filing announcements, contrary to typical positive market reactions to such institutional developments. The muted response suggests investors may have already incorporated ETF approval expectations into current valuations.

Technical indicators show bearish momentum in the NEAR term.

SOL faces critical support levels at $170 and $158, with traders monitoring these zones for potential breakdown signals. A sustained MOVE above $180 could restore bullish sentiment among technical analysts.

The cryptocurrency struggles with broader market uncertainty that has affected most digital assets in recent weeks. Trading volume patterns indicate cautious positioning by institutional and retail investors alike.

Understanding Cryptocurrency ETFs and Staking Mechanisms

Exchange-traded funds represent investment vehicles that track underlying assets while trading on traditional stock exchanges. Cryptocurrency ETFs allow investors to gain exposure to digital assets without directly purchasing or storing the tokens themselves. These products provide regulated access to cryptocurrency markets through established brokerage accounts.

Staking refers to the process of locking cryptocurrency tokens to support network operations and earn rewards. Solana's proof-of-stake consensus mechanism allows token holders to delegate their holdings to validators and receive periodic distributions.

The inclusion of staking provisions in ETF applications addresses how fund managers will handle these rewards.

In-kind redemption structures enable large institutional investors to exchange ETF shares directly for underlying assets rather than cash. This mechanism helps maintain efficient pricing and reduces tracking errors between ETF share prices and underlying asset values.

Institutional Implications

The revised filings represent significant institutional validation for Solana's ecosystem. With over $60 billion in staked SOL tokens, the network demonstrates substantial institutional participation and technical maturity. Asset managers view this staking activity as evidence of network stability and long-term viability.

ETF approval would provide regulated investment access for pension funds, endowments, and other institutional investors currently restricted from direct cryptocurrency purchases. These institutions manage trillions in assets and could represent substantial new demand for Solana exposure. The development would position Solana alongside Bitcoin and ethereum as a mainstream institutional investment option.

Regulatory approval WOULD also establish clearer legal frameworks for Solana-based financial products. This clarity could encourage additional product development and institutional adoption across the cryptocurrency sector.

Closing Thoughts

The coordinated ETF filing strategy demonstrates growing institutional confidence in Solana's long-term prospects despite short-term price volatility. While regulatory approval remains uncertain, the updated applications address key SEC concerns and align with established approval precedents. Market observers will monitor regulatory developments closely as the review process advances through late 2025.