Kraken Looks to Enter the Crypto ETF Custody Race
Following the approval of Spot Bitcoin ETFs, there is now a rush to launch Spot Ethereum ETFs. In light of this anticipation, Kraken, the second-largest crypto exchange in the U.S., is considering entering the crypto ETF custodian market, taking inspiration from Coinbase.
Coinbase currently serves as the custodian for eight out of the 11 approved Spot Bitcoin ETFs. Kraken hopes to follow a similar approach and secure a significant share of the crypto ETF domain. This information was revealed by Fox Journalist Eleanor Terrett, who received confirmation from Kraken’s official account on X with a purple heart emoji.
With the Bitcoin ETF phase completed, Kraken aims to assume the role of custodian for Spot Ethereum ETFs once they receive anticipated approval in May. This move will strengthen Kraken’s position in the crypto exchange sector and directly compete against Coinbase in the custody game.
Franklin Templeton Joins the Spot Ethereum ETF Race
Global asset management firm Franklin Templeton has filed for a Spot Ethereum ETF, offering investors easier access to the second-largest cryptocurrency. This move aligns Franklin Templeton with other financial giants like Ark 21Shares and BlackRock, indicating a growing acceptance of cryptocurrencies in traditional finance.
The filing reveals that Franklin Templeton aims to provide an investment option for direct Ethereum investments without dealing with the complexities of digital asset management. This approach saves time and promotes transparency while integrating digital assets into traditional investment portfolios.
A standout feature of Franklin Templeton’s proposed Spot Ethereum ETF is its inclusion of staking, allowing the fund to earn rewards by participating in ETH’s consensus mechanism. This innovative addition bridges traditional financial instruments with Ethereum’s transactional characteristics, setting Franklin Templeton apart from its competitors.
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