Franklin Templeton Joins Ethereum ETF Race
Date: 2024-02-13 Author: Dima Zakharov Categories: BUSINESS
Franklin Templeton's Move
Franklin Templeton, managing assets worth $1.5 trillion, has submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC) on February 12th. If approved, it will be listed as the "Franklin Ethereum ETF" on the Chicago Board Options Exchange (CBOE).
Staking Ethereum
Franklin Templeton has hinted at its intention to stake a portion of the ETF's Ether for additional income, similar to ARK 21Shares' recent filing. They stated, "The Sponsor may from time to time place a portion of the Fund’s assets through one or more trusted stacking providers, which may include an affiliate of the Sponsor."
Decision Timeline
SEC is expected to decide on various ETF applications by specific dates. For instance, VanEck's application is due by May 23rd, ARK 21Shares by May 24th, Hashdex by May 30th, Grayscale by June 18th, and Invesco by July 5th. Fidelity and BlackRock's applications are due by August 3rd and 7th, respectively.
Bloomberg Analyst's Insight
Bloomberg ETF analyst James Seyffart anticipates a decision on all applicants by May 23rd, resembling the SEC's approach to Bitcoin ETFs. Another Bloomberg analyst, Eric Balchunas, lowered the odds of Ethereum ETF approval in 2024 from 70% to 60% on January 30th.
Franklin Templeton's Position
Although Franklin Templeton is behind in the Ether ETF race, it recently praised Ethereum's fundamental characteristics, hinting at a broader interest beyond Bitcoin.
Franklin Templeton's entry into the Ethereum ETF race underscores the growing institutional interest in cryptocurrency investment products, marking a significant development in the crypto finance landscape.
