Franklin Templeton Files for Ethereum ETF

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  • Franklin Templeton has filed for a spot Ethereum ETF, joining seven other contenders
  • All ETF applicants are those who had their Bitcoin ETF filings approved last month
  • Approval would mean that the SEC does not consider Ethereum to be a security

Asset management giant Franklin Templeton revealed on Monday that it had officially filed for a spot Ethereum exchange-traded fund (ETF), marking its entry as the eighth player aiming to introduce a similar product in the market. This move follows the US Securities and Exchange Commission’s (SEC) approval of 11 spot Bitcoin ETFs in January and turns attention onto the space’s second-biggest coin by market cap. All the potential suitors for an Ethereum ETF are those who have already been successful with a Bitcoin ETF, showing that they have the know-how to get the job done.

SEC Would Not Consider Ethereum a Security

As with a Bitcoin ETF, a spot Ethereum ETF would track the market price of the underlying digital asset, offering investors exposure to Ether without the need to directly purchase it. This accessibility could potentially attract more traditional investors to Ethereum, broadening its investor base and increasing liquidity in the market. Additionally, an Ethereum ETF could serve as a gateway for institutional investors and retail traders alike to participate in the Ethereum ecosystem, further legitimizing and mainstreaming the cryptocurrency.

Importantly, success would also confirm that the SEC does not consider Ethereum to be a security, rendering SEC Chair Gary Gensler’s comments that all cryptocurrencies other than Bitcoin are securities.

Decision by May?

Franklin Templeton’s filing brings the total number of ETF providers competing to introduce spot Ether ETFs to eight, all of whom launched spot Bitcoin products in January. However, while major players like BlackRock and Fidelity have amassed significant assets in their spot Bitcoin ETFs—$4.18 billion and $3.49 billion, respectively—Franklin Templeton currently trails behind in asset size, with its Bitcoin ETF totaling only $77 million.

The SEC has delayed all spot Ethereum ETF filings, with VanEck’s application set to be approved or denied by May 23.