Wall Street titan and asset manager Franklin Templeton has recently applied for an Ethereum Spot Exchange-Traded Fund (ETF), following its struggles to gain approval for a Bitcoin Spot ETF earlier this year. This move comes as a result of other asset managers gravitating towards the Ethereum spot ETF, after the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. With the filing made with the SEC, Franklin Templeton aims to expand the availability of cryptocurrency investment products to both institutional and individual investors.
Increasing Accessibility for Investors
James Seyffart, a senior analyst from Bloomberg Intelligence, shared the news of Franklin Templeton’s application on X (formerly Twitter), including a screenshot of the filing and data on other applicants. According to Seyffart’s post, Franklin Templeton is the eighth company in the cryptocurrency market to apply for product approval. The previous asset managers that have filed applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Franklin Templeton’s application outlines the setup of the Franklin Ethereum Trust as a Delaware statutory trust. The ETF is designed to provide investors with regulated access to ETH by allowing them to store the cryptocurrency directly through a custodian. The company’s S-1 filing also mentions that the proposed “Franklin Ethereum Trust” plans to stake a portion of the fund’s assets through trusted staking providers. This process of staking involves locking up digital currency to support the operations of a blockchain network.
The ETF’s ETH holdings will be staked with the aim of supplementing its income through staking rewards. Franklin Templeton’s decision to pursue a spot Ethereum ETF comes at a time when the price of ETH has been experiencing an uptick. However, it is important to note that there is no concrete evidence linking this development to the recent price movements of crypto assets.
Rise in Ethereum’s Market Performance
As of press time, Ethereum was trading at $2,661, indicating a 7% increase in the past 24 hours. CoinMarketCap data reveals that Ethereum’s market capitalization has also seen an upward trend, with a growth of over 7%. Furthermore, Ethereum’s trading volume has significantly increased by more than 172% in the past day. These positive indicators have propelled ETH to the third spot in the overall crypto market by trading volume.
The surge in Ethereum’s market performance, coupled with the increasing interest from institutional investors, highlights the growing recognition of the potential of blockchain technology and cryptocurrencies. The approval of more ETFs will likely lead to greater adoption and mainstream acceptance of cryptocurrencies. However, it is essential for investors to conduct their own research and be aware of the risks associated with investing in this volatile market.
Disclaimer: This article is intended for educational purposes only and does not reflect the opinions of NewsBTC regarding investment decisions. All investments carry inherent risks, and individuals are urged to exercise caution and conduct thorough research before making any investment choices.