After seeing its Bitcoin spot ETF approved by the SEC last month, the asset manager has this time filed its application for ETH. The fund is also expected to generate additional revenues from staking on Ethereum.
Franklin Templeton plans to launch its ETH spot ETF
Now that spot ETFs on Bitcoin have been approved last month in the US by the Securities and Exchange Commission (SEC), the cryptocurrency ecosystem is now awaiting those concerning ETH.
In this regard, asset manager Franklin Templeton also entered the race on Monday for its own spot Ethereum ETF, filing an application with the SEC via a 140-page long document.
According to the document, custody of the ETHs will be entrusted to Coinbase, while BNY Mellon will be responsible for cash management.
In addition, ETF unit holders could benefit from additional income beyond any price appreciation, thanks to staking :
“The Sponsor [Franklin Holdings, ed.] may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include an affiliate of the Sponsor. In return for any staking activity in which the Fund may engage, the Fund would receive certain staking rewards in the form of Ether tokens, which may be treated as income to the Fund. “
So, Franklin Templeton is now awaiting a green light from the SEC, along with other well-known asset managers that have been in the ETF news in recent months, such as Grayscale, BlackRock or VanEck :
Here’s the most recent table of other filers that I have pic.twitter.com/xCRRMwK76r
– James Seyffart (@JSeyff) February 12, 2024
Parallel to this bid, EZBC, the company’s BTC-backed ETF, reached $63.8 million in assets under management, for fund units at $29.18 each.
