Asset Management Firm Franklin Templeton Files for Spot Ethereum ETF

Popular asset management company Franklin Templeton has joined a slew of financial firms to file for the approval of the spot Ethereum exchange-traded fund (ETF) with the U.S. Securities and Exchange Commission (SEC).

More Spot Ethereum ETF Applications

According to a Form S-1 submitted with the American financial agency for the spot Ethereum ETF, Coinbase Custody Trust Company and the Bank of New York Mellon will become custodians for the ether and cash holdings, respectively. The Chicago Board Options Exchange (CBOE) BZX Exchange will facilitate the listing and trading of the ETF shares.

The purpose of the financial product is to enable American investors to gain exposure to Ether, the second-largest cryptocurrency while enjoying the benefits common to traditional financial companies. The ETF product also reduces the complexities involved in purchasing actual ETH.

If approved, the investment asset manager will purchase ETH on behalf of investors while offering shares that track the asset’s price.

Presently, other financial firms have filed for a similar investment vehicle with the U.S. SEC. For example, giant investment managers BlackRock and Grayscale have filed for the same ETF product.

Cathie Wood’s ARK and 21Shares have also jointly filed for the same financial product. Days ago, the firm adjusted its spot ETH ETF filing, adding a section about potentially staking ETH through third-party staking providers and other additions. Franklin Templeton’s latest filing also included the possibility of staking of ETH.

When Will the SEC Approve the Product?

It is unclear as to when the regulatory agency will approve the financial product. Market experts speculate that the U.S. SEC will endorse ETH-based financial products in some months’ time. The assumption follows the idea that it took the financial watchdog several months to approve the spot Bitcoin ETF.

Several users are optimistic that the financial product will see a massive embrace among American investors like its Bitcoin counterpart. As with BTC, the ETF approval and sales may trigger a substantial price increase for Ether.

Current data shows that ETH trades at $2,660, a 6.2% increase in the last 24 hours.

Source: CoinStats