On Monday, investment firm Franklin Templeton took its first step toward establishing itself. Ethereum ETH
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The ETF joins other asset managers already seeking approval from the Securities and Exchange Commission.
The company filed an S-1 registration statement for the Franklin Ethereum ETF and said the fund will generally reflect the price of Ethereum. Coinbase Custody Trust Company and Bank of New York Mellon will serve as custodians for ether and cash holdings, respectively.
The shares will be listed and traded on the Cboe BZX Exchange, Inc. filing.
“The shares are intended to provide a convenient means of making investments similar to investments in Ether, including acquiring, holding and trading Ether, peer-to-peer or otherwise, either directly or through digital asset platforms.” . “The shares are designed to eliminate the obstacles associated with the complexities and operational burdens associated with direct investments in Ether by providing investments at a value that reflects the price of the Ether owned by the Fund at the time, less the Fund’s expenses.”
“Approved participants will deliver only cash to issue shares and will receive only cash when redeeming shares,” the filing reads.
Others are looking to launch spot Ethereum ETFs.
Cathie Wood’s Ark Invest and 21Shares, Grayscale Investments and black stone I have applied for both spot Ethereum ETFs over the past few months.
Ark and 21Shares filed an amended registration statement for their prospective spot Ethereum ETF last week, including a possible new staking component. Franklin Templeton’s Monday filing also includes staking.
“The Sponsor may, from time to time, stake a portion of the Fund’s assets through one or more trusted staking providers, which may include affiliates of the Sponsor. In consideration of the staking activities in which the Fund may engage, the Fund should: According to , you receive certain staking rewards in Ether tokens that can be treated as income to the fund.
The SEC has postponed a decision on another Ethereum ETF application, and experts are mixed on whether the product is likely to win approval this year.
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