Franklin Templeton doubles down on crypto, Bakkt seeks capital, and more

Trillion dollar asset manager Franklin Templeton is jumping on another crypto product, now he wants permission to get a spot Ether exchange-traded fund (ETF). Along with ARK 21Shares, Franklin wants to include shares in an Ether ETF to generate additional income, according to a Feb. 12 filing.

The companies are competing with BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale and Hashdex for regulatory approval, with final decisions expected between May and August.

This week's headlines also include Bakkt's approval to raise capital. With cash shortages, the company has sought approval from regulators to issue more shares over the next three years.

Meanwhile, digital asset investment manager CoinShares turned things around and returned to profit for the fourth quarter of 2023, a significant year-over-year recovery.

This week in CryptoBiz, we look at Franklin Templeton's entry into the Ether ETF race, Ripple's new security purchase, Bakkt's securities sale, and CoinShares' Q4 earnings.

Franklin Templeton joins the Ethereum ETF race

Franklin Templeton has become the latest Wall Street firm to file for a spot ether (ETH) ETF in the United States. The asset management firm filed an S-1 filing with the US Securities Exchange Commission on February 12. If approved, it will be listed on the Chicago Board Options Exchange as the “Franklin Ethereum ETF”. Additionally, Franklin indicated last week that it intends to split a portion of the ETF's Ether to generate additional income, similar to ARK 21Shares' amended S-1 filing. The company recently praised the network fundamentals of Ethereum, Solana and other blockchains, leading to speculation that the ETF issuer could expand into crypto services.

Ripple has received the formal protection and trust of the second security provider

Ripple has acquired Standard Custody & Trust Company, an American digital asset protection provider. The Company provides custodial and transit services under a charter granted by the New York State Department of Financial Services and is a qualified custodian under federal law. Standard already had a relationship with Ripple through its executives. Along with its roots, Ripple says it already holds a New York bitlicense and about 40 money transfer licenses in US states. Terms of the deal have not been made public.

As we integrate Custody with Ripple's products, we see clear synergies with @StandardCustody to complement our payments and custody offering – a one-stop service for moving, converting and storing value across blockchain and crypto. https://t.co/N0q2VgVm2T

— Monica Long (@MonicaLongSF) February 13, 2024

Bakkt has approved a $150 million bond sale to stem its cash flow

Crypto firm Bakkt has received regulatory approval to raise up to $150 million in securities sales. The company is said to have obtained permission for “shelf registration”, which allows the new version of the containers to be sold later without the need for separate approval. The green light allows Bakht to raise $150 million in capital in one or more offerings over three years. Bakkt crypto offers escrow and trading services. The company has recently disclosed cash flow issues and has sought permission to raise additional capital. Bakht has reported eight consecutive quarters of losses since going public in October 2021.

CoinShares Announces Revenue of $108M in 2023 Earnings Report

Investment platform CoinShares announced annual revenue of $108.5 million for 2023 in its fourth quarter report. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $32.51 million. Compared to its earnings in 2022, CoinShares recorded a significant recovery in 2023. In the fourth quarter of 2022, the company's EBITDA was negative $30.11 million, while its total revenue was negative $46.94 million. The company reported a 109% year-over-year increase in assets under management to $3.8 billion due to a quantitative recovery in asset prices and net inflows into its products.

Before you go, Ether could reach $27,000 at the top of the current bull cycle, predicts Ethereum community member and investor Ryan Berkmans. Berkmans points to the lack of sales pressure from miners as one of the main reasons for the merger reform.

Crypto Biz is the weekly heartbeat of the business behind blockchain and crypto, delivered straight to your inbox every Thursday.