Franklin Templeton Joins Ether ETF Applicants, Eyes Approval

• Investment management firm Franklin Templeton has submitted an Ethereum ETF filing with the Securities and Exchange Commission.
• Franklin Templeton is one of the issuers that received a Bitcoin ETF approval from the commission.
• The application joins other Bitcoin ETF issuers’, who are also in the race for the SEC’s approval.

The greenlight of  Bitcoin ETFs by the Securities and Exchange Commission (SEC) has given rise to the buzz of Exchange Traded Funds investing in the second most popular cryptocurrency, Ethereum , as issuers and investors hope for the commission to make a decision similar to the precedent set with Bitcoin.

Eight hopefuls are seeking the commission’s approval on their respective applications, and now joining the race is the investment management firm Franklin Templeton.

Franklin Templeton Eyes Ethereum ETF

On Monday, February 12, Franklin Templeton filed a Form S-1 to the SEC, seeking approval for the proposed launch and sale of its Franklin Ethereum ETF. 

Franklin Templeton’s Ether ETF proposal mirrors its Bitcoin ETF , with Coinbase Custody Trust Company and the Bank of New York Mellon named as the respective custodians of its Ether and cash holdings, and the Cboe BZX Exchange for the trading of the shares.

The application makes the investment management firm the eighth contender seeking approval, joining the ranks of BlackRock , Grayscale, Fidelity , and Ark21 Shares, all of whom filed applications with the commission in the past year. 

Currently, the SEC has not approved any of the applications. However, optimism is charged among investors and analysts for eventual approval.

Will the SEC Approve Ether ETFs?

Despite the SEC’s extension of its decision deadline on three applications, the prevailing industry sentiment has chartered an optimistic course for the potential approval of Ethereum ETFs. 

Bloomberg analyst James Seyffart anticipates a 5-month consideration process for the filings and has predicted that the commission will extend deadlines until May, which is a plausible timeframe for the commission’s verdict.

The recent ARK 21Shares amendment filing to its Ethereum ETF application has further heightened the anticipation. On February 7, ARK amended its application to adopt a cash-creation model, bringing it in line with the mandated requirement by the SEC in its Bitcoin ETF consideration process. 

Market analysts have added that the SEC will likely follow the precedent it set with Bitcoin and roll out all Ether ETF approvals simultaneously.

On the Flipside

• SEC chair Gary Gensler has a drawn line between its Bitcoin ETF approval and the embrace of cryptocurrencies, asserting that the former does not connote the latter.
• Grayscale and BlackRock ’s Ethereum ETF applications have been issued a 45-day extension by the SEC.
• Bitcoin ETFs have experienced an impressive run within their first trading month, attracting over $25 billion in inflows and smashing multiple records . 

Why This Matters

Franklin Templeton’s entry into the Ethereum ETF race intensifies the ongoing discussions about the SEC’s potential approval of the proposed investment vehicle. However, regardless of the broader industry predictions, the final decision on Ethereum ETFs rests with the Commission.

Read more about SEC Commissioner Hester Peirce’s comments on the Ethereum ETF approval process:
Ethereum ETF: “Let Americans Decide” SEC Commissioner Urges  
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