Franklin Templeton Seeks Approval for Spot Ethereum ETF

Asset management firm Franklin Templeton has filed an application to register a spot Ethereum ETF.

Coinbase Custody Trust Company will serve as the custodian for the second-largest cryptocurrency by market capitalization, while Bank of New York Mellon will handle the cash assets.

If approved, the product will be listed on the Cboe BZX Exchange.

The structure involves using only cash for the creation and redemption of ETF shares, similar to bitcoin-based instruments.

Previously, a similar option was proposed by ARK Invest and 21Shares in an updated application for launching an Ethereum ETF. 

The document also mentions the possibility of using staking to generate additional income. This option is also included in Franklin Templeton’s application.

Proposals for launching a spot ETF based on the second-largest cryptocurrency by market capitalization have also been submitted by Grayscale, BlackRock, and Invesco with Galaxy.

Some experts believe that the regulator will approve the products in May. Grayscale suggested a positive decision could come in the summer.

In December, SEC Chairman Gary Gensler, commenting on the agency’s changing stance on spot bitcoin funds, cited “court decisions” as one of the reasons. Commissioner Hester Peirce expressed confidence that such proceedings would not be necessary for Ethereum.

However, some analysts doubt the swift approval of spot ETH ETFs for various reasons.

David Lawant, head of research at FalconX, explained the increased interest in Ethereum staking as optimism regarding the possibility of ETF issuers placing some coins in relevant services if the product is approved.