Cathie Wood Doubts SEC Approval for Non-Bitcoin and Ethereum ETFs
Cathie Wood, founder of ARK Investment Management, has expressed skepticism regarding the Securities and Exchange Commission’s (SEC) stance on approving spot exchange-traded funds (ETFs) following cryptocurrencies beyond Bitcoin and Ethereum. Wood believes that only Bitcoin and Ether will be approved by the SEC.
Franklin Templeton Files for Spot Ethereum ETF
Franklin Templeton has filed with the SEC for approval to launch a spot Ethereum ETF. If approved, it would be listed as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. The filing states that Franklin Templeton plans to stake a portion of the ETF’s Ether for additional income, similar to strategies outlined in ARK 21Shares’ recent applications.
“The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor,” the filing stated.
Competitors’ Success with Bitcoin ETFs
On January 11, 2024, eight firms, including Franklin Templeton, introduced spot Bitcoin ETFs. However, Franklin Templeton’s spot Bitcoin ETF has been less successful compared to others, gathering only $77 million by February 9. BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) have experienced higher investor interest.
SEC Delays Decisions on Spot Ethereum ETFs
The SEC has postponed decisions on approving spot Ethereum ETFs. Grayscale Investments’ application to transform its Ethereum trust offering into a spot ETF was postponed. Additionally, BlackRock’s proposal and VanEck’s application for a spot Ethereum ETF were delayed. JP Morgan estimates the likelihood of approval for such a fund before May is below 50%.
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