Wall Street titan Franklin Templeton has taken a step towards expanding the availability of cryptocurrency investment products by applying for an Ethereum Spot Exchange-Traded Fund (ETF). This move comes after the struggle to gain approval for their Bitcoin Spot ETF in January. Asset managers have increasingly shown interest in Ethereum ETFs since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton joins a growing list of companies applying for approval for this financial product.
Franklin Templeton recently introduced Bitcoin spot ETFs successfully, which has encouraged them to pursue an Ethereum spot ETF. This development aims to make crypto investment products more accessible to both institutional and individual investors. The filing by Franklin Templeton comes as the eighth entry in the cryptocurrency market’s list of applicants for Ethereum ETF approval. Other asset managers, including Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy, have previously filed applications for Ethereum ETFs.
Franklin Templeton’s Ethereum ETF, named Franklin Ethereum Trust, is organized as a Delaware statutory trust. The ETF aims to provide investors with regulated access to ETH by allowing them to store it directly through a custodian. The company’s S-1 filing states that the proposed trust will hold ETH and may stake a portion of its assets through trusted staking providers. Staking involves locking up digital currency to support blockchain network operations and can generate additional income through staking rewards.
The application for the Ethereum spot ETF aligns with the recent uptick in ETH’s price. However, there is no concrete evidence to suggest that this development directly influenced the price of cryptocurrencies. As of press time, Ethereum’s price stands at $2,661, indicating a 7% increase in the past 24 hours. The market capitalization of ETH has also experienced an upward trend, rising by over 7%. Moreover, the trading volume of Ethereum surged by more than 172% in the past day, resulting in ETH ranking third in the entire crypto market by trading volume.
Franklin Templeton’s application for an Ethereum Spot ETF represents a significant move toward expanding crypto investment options. The asset manager’s successful introduction of Bitcoin spot ETFs has encouraged them to seek approval for an Ethereum ETF. By offering a regulated structure and the ability to stake holdings for additional rewards, Franklin Templeton aims to make Ethereum more accessible to investors. The impact on ETH’s price remains uncertain, but the recent uptick in value and trading volume suggests growing interest in the cryptocurrency. As the crypto market continues to evolve, the availability of diverse investment products like ETFs can further mainstream adoption and increase market liquidity.
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