The U.S. Securities and Exchange Commission (SEC) has initiated proceedings to solicit public comments on the proposed Exchange Traded Funds (ETFs) for both Solana (SOL) and XRP from Franklin Templeton, as listed on the Cboe BZX Exchange. This action marks a crucial step in the SEC's evaluation process, inviting diverse perspectives from market participants, including institutional investors, retail participants, and industry experts. The deadline for submitting these comments and rebuttals is set for late July 2025, signaling a thorough and extended review period.
Franklin Templeton, a major player in the asset management arena with over $1.5 trillion in assets, has proposed spot ETFs for Solana and XRP. The SEC's decision to open these proposals to public comment underscores its commitment to transparency and comprehensive evaluation, rather than quick approvals. The agency aims to diligently assess the implications for the market, ensure investor protection, and confirm compliance with established securities laws before making a final determination.
Initially, the SEC's decisions regarding Franklin Templeton's spot Solana and XRP ETFs were anticipated by mid-2025. However, the review period has been extended, setting new deadlines for the final decisions. The deadline for the spot XRP ETF application is now slated for November 2025, while the review for the Solana ETF is expected to conclude by October 2025. This extension is part of the SEC's broader review process, reflecting the need for additional time to thoroughly examine the proposals and ensure adherence to regulatory standards under the Securities Exchange Act.
The SEC's scrutiny isn't limited to Franklin Templeton's applications. ProShares has also submitted ETF applications for Solana and XRP, with a decision deadline set for June 25, 2025. The crypto community is closely watching to see if the SEC will apply similar delays to these filings, given the current regulatory environment and recent extensions. Such a move would highlight the SEC's consistent approach to spot crypto ETFs, emphasizing the necessity of robust investor safeguards and market integrity.
Despite these regulatory delays, market sentiment remains largely optimistic. Prediction markets indicate a high probability for the approval of a Solana ETF and the launch of a spot XRP ETF within 2025. This optimism reflects growing confidence in the maturation of cryptocurrency markets and the evolution of regulatory frameworks. However, it also suggests that stakeholders should be prepared for a potentially prolonged timeline before these ETFs are finally launched.
The SEC's decision to extend the review period and solicit public comments underscores its cautious yet methodical approach to crypto asset approvals. While the delay may push back the immediate market entry of these ETFs, it ensures a comprehensive evaluation process that prioritizes investor protection and market stability. The crypto community now has a valuable opportunity to contribute insights through the public commentary period, which remains open until late July 2025. This collaborative approach between regulators and market participants is crucial for shaping the future of crypto-based investment products and fostering a more secure and transparent market environment.
