Franklin Templeton Joins Race for Ether ETF, SEC Decisions Awaited for Multiple Applications
Summary:
Franklin Templeton, an asset management firm with overseen assets of $1.5 trillion, has applied for an Ether (ETH) exchange-traded fund (ETF) in the US. The firm anticipates staking a portion of the ETF's Ether to generate extra income. Other firms, including BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale, and Hashdex, are also applying for spot Ether ETFs. The SEC is set to decide on these applications in the upcoming months, with Bloomberg analyst James Seyffart predicting a collective decision by May 23.
Franklin Templeton, a significant player on Wall Street, is now joining the race for establishing an Ether (ETH) exchange-traded fund (ETF) in the US. The asset management company, which oversees $1.5 trillion in assets, lodged the S-1 application with the US Securities Exchange Commission (SEC) on February 12, intending to list it as “Franklin Ethereum ETF” on the Chicago Board Options Exchange.
Intriguingly, Franklin Templeton disclosed a projection of staking a section of the ETF's Ether to generate extra income. It stated that a part of the Fund’s assets could be staked through one or more reliable staking facilitators, possibly an affiliate of the sponsor. This staking is envisaged to come from the trust's cold storage wallets, and the trust would subsequently accumulate staking benefits, considered income.
ARK 21Shares also updated its S-1 filing to include similar action last week. Other firms aiming for SEC approval for spot Ether ETF are BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale, and Hashdex.
Regarding the upcoming decisions, VanEck’s application is due for consideration by May 23, ARK 21Shares on May 24, Hashdex by May 30, Grayscale on June 18, and Invesco by July 5. Fidelity and BlackRock await their verdicts on Aug. 3 and Aug. 7, respectively.
Although, Bloomberg analyst James Seyffart anticipates a collective decision on all applications by May 23, much like how the US securities regulator handled all spot Bitcoin ETF decisions on January 10. On the other hand, fellow Bloomberg ETF analyst, Eric Balchunas, recently downgraded the chances of a spot Ether ETF approval in 2024, from 70% to 60% as of January 30.
Published At
2/13/2024 12:52:17 AM
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