Franklin Templeton Files for Ethereum ETF
Asset management firm Franklin Templeton has recently filed an application with the Securities and Exchange Commission (SEC) for a spot Ethereum ETF. The proposed ETF would hold ether tokens with Coinbase Custody as the custodian and allow for staking to generate rewards on holdings.
Franklin Joins Other Asset Managers in Seeking SEC Approval
Franklin Templeton joins several other asset managers, including BlackRock, Ark Invest, and 21Shares, in seeking SEC approval for an Ethereum ETF. While Franklin recently launched a bitcoin ETF, it has seen less demand compared to competitors. Its filing indicates that the ETF would hold ether with Coinbase Custody and cash with BNY Mellon, and allow for ether staking to generate rewards.
SEC Decision on Ethereum ETF Applications
The SEC has delayed decisions on Ethereum ETF applications so far. Experts are split on the chances of approval in 2024. Meanwhile, the price of ether climbed 5.5% on Monday to near $2,647, and bitcoin crossed $50K for the first time since 2021.
Eyes on Regulators’ Decisions
The entire crypto industry is eagerly awaiting the fate of these ETF applications. Approval of a spot Ethereum ETF could accelerate mainstream institutional adoption of ether and other digital assets. However, regulatory concerns around volatility, custody solutions, and crypto hacking incidents have made the SEC cautious. Industry leaders will closely monitor the decisions and fallout in the coming months.
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