Franklin Templeton is the latest to file for Ethereum ETF approval
Asset management firm Franklin Templeton is the latest to enter the race for a spot Ethereum ETF, filing with the Securities and Exchange Commission (SEC) this week.
The proposed Franklin Ethereum ETF will hold Ether tokens from Coinbase Custody as a custodian and allow shares to generate rewards on holdings.
TLDR
Franklin Templeton Joins Other Asset Managers BlackRock, Ark Invest and 21Shares in Seeking SEC Approval Franklin Templeton Offers Space Ethereum ETF Franklin recently launched a bitcoin ETF, but Franklin's record shows less demand than BlackRock and Fidelity's bitcoin ETFs. The ETF holds Ether in cash with Coinbase Custody and BNY Mellon, and allows it to generate rewards for Ether staking. Bitcoin rises to $2,647 as it crosses $50k for first time since 2021
Franklin joins more than half a dozen issuers that have filed for Ethereum ETFs in recent months, including BlackRock, Ark Invest, 21Shares, Grayscale and others. Franklin himself launched a bitcoin ETF along with nine other firms after receiving SEC approval. However, its bitcoin ETF has only seen $70 million in revenue, far less than competitors like BlackRock's blockbuster $3.5 billion bitcoin fund.
Now, Franklin is looking to use his product recognition to attract investors to the Ethereum product. The Franklin Ethereum ETF file states that authorized participants only provide cash to create shares and only receive cash when they buy. The Fund's shares will trade on the Cboe BZX exchange if approved.
Franklin's filing also suggests that the fund may take a portion of its Ethereum holdings to generate higher rewards. Competitors such as Arc Invest have similarly updated their files to include components that can produce more product. It currently has a whopping 25% stake in Ether to confirm transactions on the network.
#Bitcoin rallied $50K on Monday amid accelerating ETF gains. $ETH gains over 5% as Franklin Templeton joins Ethereum ETF race
@sndr_krisztain reports
— CoinDesk (@CoinDesk) February 12, 2024
So far, the SEC has been slow to make any decisions on Ethereum ETF applications. Some experts believe that the probability of approval before May is less than 50%, while others see better chances of getting the green light at the end of Q2 2024. Much will depend on how the bitcoin and Ethereum markets perform in the coming months.
The entire crypto industry is eagerly awaiting the fate of these ETF apps. Ether prices rose 5.5% to $2,647 on Monday, reaching their highest level since 2021. Bitcoin rallied strongly, topping $50,000 for the first time in more than two years.
Spot approval can rapidly accelerate mainstream institutional adoption of Ether and other digital assets. As the second largest kriptovalyutnogo with a market value of more than 300 billion dollars, an Ethereum ETF offers an easy way for large money managers to gain exposure compared to directly owning coins. But regulatory concerns surrounding volatility, custodial solutions, and crypto hacking incidents have kept the SEC cautious to this day.
All eyes are on how regulators manage these Ethereum ETFs. With powerhouse brands like BlackRock and ArchInvest in the mix, the odds seem much improved. But questions remain about whether the SEC will be ready to give its blessing in 2024. Time is running out as rivals like Canada and other states appear more open to allowing ETF products. Industry leaders will be closely monitoring the decisions and failures in the coming months.
