Franklin Templeton Applies for Ethereum ETF, Joining Growing Interest in Cryptocurrency
Franklin Templeton, a prominent asset manager overseeing $1.5 trillion, has recently submitted an application for an Ethereum ETF (exchange-traded fund). This move positions Franklin Templeton as the eighth company in the asset management sector to propose an ETF focused on the popular cryptocurrency. The growing interest in cryptocurrency within the industry follows the successful approval of Spot Bitcoin ETFs.
The Franklin Ethereum Trust, established as a Delaware statutory trust, aims to hold ether through a custodian and replicate the performance of its price. Franklin Templeton is now in the company of other major asset managers, including Grayscale, Fidelity, and Ark21, who are also pursuing a Spot Ethereum ETF. However, considering the months-long approval process for Bitcoin ETFs, it may take some time before any Spot Ethereum ETFs gain regulatory approval from the U.S. Securities and Exchange Commission (SEC).
According to Standard Chartered, the first Spot Ethereum ETFs are projected to be approved by May 2024. Market analysts anticipate a significant surge in Ethereum’s value, similar to the price rally observed in Bitcoin prior to its Spot ETF approval in the United States. Consequently, high trading activity is expected right from the start for ETH ETFs.
The asset management industry continues to demonstrate its growing fascination with cryptocurrencies, with Franklin Templeton’s application for an Ethereum ETF being the latest example. As the industry diversifies its investment offerings, investors and enthusiasts eagerly await the emergence of more cryptocurrency-related investment vehicles.
Analyst comment
Positive news: Franklin Templeton’s application for an Ethereum ETF signals growing interest in cryptocurrency within the asset management sector. Market analysts anticipate a surge in Ethereum’s value, similar to the Bitcoin rally prior to a Spot ETF approval. High trading activity is expected, although regulatory approval may take some time. Investors eagerly await the emergence of more cryptocurrency-related investment vehicles.
