The spot Ethereum exchange-traded fund (ETF) race continues to heat up with today’s entry of Franklin Templeton, a prominent Wall Street institution that has filed a proposal with the Securities and Exchange Commission.
Franklin Templeton, a prestigious firm with $1.4 trillion in assets under management, wants to launch a fund that will offer investors ETH, the second-largest cryptocurrency by market capitalization.
The company’s S-1 registration form states that the proposed “Franklin Ethereum Trust” will hold ETH and “from time to time stake a portion of the Fund’s assets through one or more trusted staking providers.” It is possible to do so.”
“Staking” refers to the process of “locking up” digital coins or tokens to keep a blockchain network running. Those who stake earn token rewards in the process.
However, this is a controversial move among Tradfi officials and regulators. The SEC has already fined major cryptocurrency companies, including Coinbase, for allegedly selling unregistered securities through staking services.
In January, the SEC gave the green light for 10 spot Bitcoin (BTC) ETFs to begin trading. After a decade of denial, the investment vehicle is now traded on stock exchanges, allowing traditional investors to invest in cryptocurrencies without actually owning them.
Franklin Templeton is one of the major fund managers to receive regulatory approval for the Franklin Bitcoin ETF.
Other major companies offering spot ETH ETFs include BlackRock, Grayscale, and VanEck.
Since the approval of the Spot BTC ETF, billions of dollars have flowed into the fund, pushing up the price of the cryptocurrency.
British multinational bank Standard Chartered said in a report last month that it expects the ETH ETF to receive SEC approval by May.
Edited by Ryan Ozawa.