With the recent market downturn, traders are clinging to every single piece of good news. So far, positive developments, such as introducing the Bitcoin strategic reserve, failed to induce bullish momentum.
However, this outlook may soon change for Solana, which has the potential to outperform ETH. Most recently, investment giant Franklin Templeton took the first step in applying for its own Solana ETF product.
On Wednesday, March 12, the Chicago Board Options Exchange (CBOE) filed a form 19b-4 for Franklin Templeton for a Solana Exchange Traded Fund (ETF). The form is the first step in the Securities and Exchange Commission’s (SEC) approval process of new investment products.
This was not the first sign that Franklin Templeton has been interested in a Solana ETF. In January, the asset manager registered an entity in Delaware named FRANKLIN SOLANA TRUST. What is more, the investment firm made a similar filing in 2024, which was rejected by the SEC in August that year. However, under new leadership, the SEC has significantly shifted its stance on crypto assets, especially altcoins.
Due to the recent changes in the SEC’s stance on altcoins like Solana, several major ETF managers took steps toward their own Solana ETFs. In January, CBOE filed the 19b-4 form for Bitwise, VanEck, 21Shares, and Canary Capital.
What ETFs Mean For the Solana Price
Franklin Templeton’s move suggests a degree of institutional interest in Solana. Still, this interest was not enough to move Solana’s price. Like the rest of the crypto markets, bearish momentum persisted.
Currently, Solana’s price is trading at $124.17, down more than 50% from its January all-time high of $294.33. At the same time, short-term indicators are largely bearish. Solana’s 20-week exponential moving average is $145.48, which is also its resistance. At the same time, traders will have to defend the $118.05 support.
The relative strength index (RSI) is at 36.56, technically neutral but close to oversold. For this reason, the latest ETF news has the potential to catalyze significant upward momentum. However, this will likely depend on the potential recovery of Bitcoin. In that case, Solana is in a good position to outperform ETH.
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