- Investment giant Franklin Templeton joins the race for a spot Ethereum ETF, filing with the SEC.
- The ETF aims to track the price of ether and simplify investments compared to direct crypto holding.
- Approval remains uncertain with mixed expert opinions and SEC delays on previous applications.
Franklin Templeton has submitted an S-1 registration statement for the “Franklin Ethereum ETF,” aimed at tracking the price of ether.
This move follows similar filings from other major players like Ark Invest, 21Shares, Grayscale Investments, and BlackRock, reflecting the growing institutional interest in cryptocurrency and the potential of ETFs for easy access.
- Secure Custody: Coinbase Custody Trust Company and the Bank of New York Mellon will manage ether and cash holdings,respectively.
- Exchange Traded: Shares will be listed and traded on the Cboe BZX Exchange for convenient investment.
The fund may stake a portion of its ether holdings to earn additional rewards.
Uncertain Path to Approval
Despite the growing interest, the SEC has delayed decisions on other Ethereum ETF applications.
Concerns around market manipulation, custody, and investor protection remain under debate, making the approval for Franklin Templeton’s ETF uncertain for 2024.
Significance of the Filing
This filing highlights the sustained interest from major financial institutions in Ethereum and the potential of ETFs for broader crypto adoption.
The move emphasizes the ongoing competition among financial institutions to offer such investment vehicles to their clients, potentially paving the way for wider crypto accessibility.