The competition for the first spot Ethereum (ETH) exchange-traded fund (ETF) intensifies with seasoned Wall Street player Franklin Templeton entering the fray.
The competition for the first spot Ethereum (ETH) exchange-traded fund (ETF) intensifies with seasoned Wall Street player Franklin Templeton entering the fray. The firm filed an application with the Securities and Exchange Commission (SEC) today, seeking approval for a fund directly tracking ETH.
This move by Franklin Templeton, managing a whopping $1.4 trillion in assets, signifies growing institutional interest in Ethereum, the second-largest cryptocurrency by market capitalization. Their proposed "Franklin Ethereum Trust" would hold ETH and explore the possibility of "staking" a portion of the fund's assets.
Staking involves locking ETH to help secure the Ethereum network and earn rewards in the process. However, staking remains a contentious issue, with regulators like the SEC fining major crypto companies for offering unregistered securities through staking services.
This development follows the January approval of 10 spot Bitcoin ETFs, marking a historic moment for cryptocurrency integration into traditional financial markets. These Bitcoin ETFs allow investors to gain exposure without directly owning or managing the digital asset. Franklin Templeton isn't alone in seeking an ETH ETF. Industry giants like BlackRock, Grayscale, and VanEck have also submitted proposals.
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