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In a surprising twist to the ongoing Ethereum exchange-traded fund (ETF) race, esteemed Wall Street titan Franklin Templeton has stepped into the fray by submitting a proposal to the Securities and Exchange Commission (SEC).
Franklin Templeton's Foray into Crypto
Boasting a colossal $1.4 trillion in assets under its management umbrella, Franklin Templeton aims to introduce a fund that offers investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization.
The firm's S-1 registration dossier outlines the blueprint for the envisioned "Franklin Ethereum Trust," designed to hold Ethereum tokens. Additionally, the trust may periodically engage in staking activities through vetted staking providers.
"Staking" involves the process of locking up digital assets to support the functionality of a blockchain network, with participants receiving token rewards in return.
Regulatory Challenges
While staking holds promise for crypto enthusiasts, it remains a contentious subject among traditional finance (tradfi) stakeholders and regulatory bodies like the SEC. Notably, the SEC has levied fines against prominent crypto firms, including Coinbase, for purportedly peddling unregistered securities through staking services.
In January, the SEC approved ten spot Bitcoin (BTC) ETFs to commence trading. This watershed moment marked a decade-long struggle, finally ushering in investment vehicles enabling traditional investors to delve into crypto without directly owning digital assets.
According to Decrypt, Franklin Templeton, having secured regulatory clearance for its Franklin Bitcoin ETF, stands as a prime example of a major fund manager making headway in the crypto ETF arena.
Industry Giants Eyeing Ethereum ETFs
Franklin Templeton joins a league of heavyweights vying to launch spot Ethereum ETFs, including industry titans like BlackRock, Grayscale, and VanEck.
According to Crypto Slate, since the inception of spot BTC ETFs, these funds have witnessed an influx of billions of dollars, propelling the cryptocurrency's market valuation skyward.
Looking ahead, British multinational banking behemoth Standard Chartered has forecasted SEC approval for Ethereum ETFs by May, underscoring the growing anticipation within the financial sector for crypto investment opportunities.
Photo: Kanchanara/Unsplash
