Ethereum (ETH) price has risen significantly over the past 24 hours, buoyed by optimism regarding the potential launch of an ETH-based ETF in the US.
The second-largest cryptocurrency by market capitalization has kept pace with Bitcoin’s recent rally. Ethereum has risen more than 8% in the past 24 hours, slightly outpacing Bitcoin’s 5% rise on the day.
Ether’s recent surge is consistent with broader positive sentiment in the market, but the move could ultimately lead to the U.S. Securities and Exchange Commission (SEC) recommending spot-based ETFs that track the price of ETH. This is also due to growing optimism that it may be approved.
Regulators have already approved Bitcoin and Ether-based futures trading in 2021, and Bitcoin ETF products have also received attention recently.
As a result, market participants are increasingly confident that the SEC will also give the green light to enter the ETH ETF. The latest filing by popular US fund manager Franklin Templeton has added to the optimism. Over $1.5 trillion under management Among the assets.
Franklin Templeton was among the list of companies approved by the SEC for spot participation in Bitcoin ETFs. While the fund hasn’t performed as well as its competitors, with just $81 million in inflows, Franklin Templeton hopes his Ether ETF will enjoy a different outcome.
Franklin Templeton Ether ETF Details
According to a report on February 12th, filing, The Ether ETF proposed by Franklin Templeton will be traded on the CBOE exchange. The fund will appoint Coinbase as its custodian, and crypto-friendly bank BNY Mellon will hold the cash on behalf of the fund.
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Similar to the recently launched Bitcoin ETF, the proposed fund will also use cash generation only. Therefore, the Fund will not accept ETH deposits or pay ETH to interested parties at any time.
However, all funds received will be used to acquire and hold Spot ETH, but if the customer wants to withdraw funds from the fund, they will be sold and repaid in cash.
Meanwhile, Franklin Templeton is not the only fund planning to launch a Spot Ether ETF. This joins competitors Blackrock, Ark, 21Shares, VanEck, Hashdex, Grayscale, Invesco, and Galaxy, all of which have applied to join the Ether ETF.
The SEC has already delayed decisions on some of the earlier filings. However, regulators only have until May 23, 2024, at which point they must make a decision on VanEck’s Spot ETH application.