Franklin Templeton Files for Spot Ethereum ETF
Franklin Templeton, a prominent Wall Street titan and asset manager, has submitted an application for an Ethereum Spot Exchange-Traded Fund (ETF). This move follows their unsuccessful attempt to secure approval for a Bitcoin Spot ETF in early January.
Surge in Interest for Ethereum Spot ETF
The Ethereum spot ETF has gained significant attention since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest asset manager to file an application with the SEC for this financial product.
Aiming to Make Crypto Investments Accessible
The asset manager’s decision to pursue an Ethereum ETF is a significant step toward making more crypto investment products available to institutional and individual investors. This move aligns with their successful introduction of BTC spot ETFs.
Franklin Templeton’s Ethereum Trust Structure
According to the official filing, the Franklin Ethereum Trust will be established 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.
Staking ETH for Additional Income
The company’s S-1 filing indicates that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.” Staking involves locking up digital currency to maintain the operations of a blockchain network. The ETF plans to stake some of its ETH holdings to generate additional income through staking rewards.
ETH Price Surge Coincides with ETF Application
Franklin Templeton’s spot Ethereum ETF application coincides with a notable uptick in the price of ETH. However, there is no conclusive evidence that the recent development directly influenced the crypto asset’s price.
Ethereum’s Market Performance
At the time of writing, Ethereum was trading at $2,661, representing an increase of over 7% in the past 24 hours. Data from CoinMarketCap indicates that its market capitalization has also experienced an upward trend, marking an increase of over 7%. Additionally, its trading volume has surged by over 172% in the past day. As a result of this rise, ETH now ranks third in the entire crypto market by trading volume.