Franklin Templeton's Praise for Solana hints at Potential Solana-based ETF
Summary:
Asset management firm Franklin Templeton recently expressed admiration for the Solana network, hinting at a potential Solana-based Exchange-Traded Fund (ETF) in the distant future. The firm cited Solana's developments in decentralized finance (DeFi), infrastructural networks, and its innovation in nonfungible tokens and meme coins during Q4 2023 as key achievements. Despite acknowledging other networks such as Ethereum and Bitcoin Ordinals, the majority of the praise was directed towards Solana, sparking speculation of an upcoming Solana-based ETF product.
Franklin Templeton, a leading asset management company with assets worth over a trillion dollars, recently expressed admiration for the Solana network via a social media post, inciting speculation of a possible Solana-based Exchange-Traded Fund (ETF) in future. The company's digital assets division, which temporarily controlled the official social media handle, highlighted the remarkable evolution of the Solana ecosystem under the guidance of Anatoly Yakovenko.
The team acknowledged Anatoly's revolutionary concept of a singular atomic state machine, as a driving force behind the decentralisation of blockchains and reduction in information asymmetry. The post on January 17 also brought attention to a surge in activity on Solana in the fourth quarter of 2023, particularly in areas such as DeFi, Meme coins, NFT innovation, and Firedancer.
The asset company emphasized the expansion of decentralized finance (DeFi), infrastructural networks, innovation in nonfungible tokens and meme coins as some of the key achievements of Solana in the past quarter. Franklin Templeton went a step further by joking about swapping its current laser-eye profile picture to an image of Benjamin Franklin wearing a knitted hat, a nod to a new meme coin "dogwifhat" on Solana.
The company also made a reference to other networks including Ethereum, Bitcoin Ordinals, BTC-based Layer-2s, and "other L1s", but the majority of the accolades were directed at Solana. This led to speculation among online cryptocurrency communities suggesting the possibility of the asset company launching Solana ETF product in the future.
After the introduction of spot Bitcoin ETFs on January 11, many are optimistic about other cryptocurrencies like Ether (ETH) and XRP being incorporated into a U.S spot crypto ETF. Presently, several spot Ether ETFs are in anticipation of SEC approval; a definitive verdict is likely to come around May as per experts.
Although Franklin Templeton has not yet considered a spot Ether ETF, it expressed strong support for the Ethereum ecosystem. Despite Ethereum's recent "midlife crisis", the asset manager is confident about its potential and anticipates major growth boosters in the Ethereum ecosystem's future.
The asset manager has recognized a few pivotal developments on Ethereum such as Protodank Sharding – a mechanism that enables rollups to insert cheaper data into blocks, via EIP-4844, and restaking – the process of reusing staked Ether for earning fees and rewards.
Franklin Templeton continues to explore and evaluate other layer-1 blockchains, hoping to discover networks with "massive potential" but has yet to specify which ones.
Published At
1/18/2024 5:26:21 AM
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