ETH Investment Opportunities Soar as Franklin Templeton Seeks Spot ETF Approval
Franklin Templeton, a prominent Wall Street institution managing $1.4 trillion in assets, has entered the competitive field of spot Ethereum exchange-traded funds (ETFs) by filing a proposal with the Securities and Exchange Commission (SEC).
The proposed “Franklin Ethereum Trust” aims to expose investors to ETH, the second-largest cryptocurrency by market cap. The S-1 registration form indicates that the fund may engage in staking through trusted providers, a practice involving locking up digital coins to support blockchain networks and earn token rewards. Despite its popularity, staking has faced scrutiny from traditional finance players and regulators, such as the SEC, which has fined crypto companies for alleged unregistered securities sales through staking services.
Following the SEC’s approval of spot Bitcoin ETFs in January, allowing traditional investors to access crypto without direct ownership, major players like BlackRock, Grayscale, and VanEck have also proposed spot ETH ETFs. The influx of billions of dollars into approved BTC ETFs has notably influenced the cryptocurrency’s price. Standard Chartered anticipates SEC approval for ETH ETFs by May, according to a recent report.
Clever Robot News Desk 13th February 2024