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Franklin Templeton has become the latest asset manager to file for a spot ethereum exchange-traded fund (ETF) with the publication of a February 12 presentation.
The company detailed its plans in an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC). Like other similar proposals, the fund will issue shares representing its assets, primarily ethereum (eth), which will be held by a custodian on its behalf. The fund also aims to reflect the price development of eth.
Franklin Templeton identified Coinbase Custody as its cryptocurrency custodian and Bank of New York Mellon as its custodian, administrator, and cash transfer agent.
The proposal only allows cash creations and redemptions, as opposed to in-kind creations and redemptions that would allow certain participants to transact in cryptocurrency. It also describes how potential rewards for staking ethereum could be treated as income for the fund. Competing applicants Ark Invest and 21Shares also addressed these issues in an amended filing on February 7.
Data from Bloomberg ETF analyst James Seyffart suggests that Franklin Templeton is the ninth asset manager to file for an ethereum spot ETF. Separately, the firm's Franklin bitcoin ETF (EZBC) was one of several bitcoin spot ETFs to gain approval in January.
SEC due to decide on VanEck's eth ETF in May
The SEC must decide to approve or reject an application for VanEck's ethereum spot ETF by May 23, 2023 without further postponing its decision. The brokerage will probably decide on other similar apps with similar content at that time.
A Polymarket prediction market ethereum-etf-approved-by-may-31″>predict There is a 48% chance that an ethereum spot ETF will be approved in May. James Seyffart expects a 60% chance of approval in May, while JP Morgan analyst Nikolaos Panigirtzoglou anticipates a 50% chance of approval in May.
Standard Chartered believes an ethereum spot ETF will be approved in May, while TD Cowen expects this type of fund to not be approved until 2025 or 2026.
The post Franklin Templeton Files for ethereum Spot ETF, Becomes 9th Applicant Overall appeared first on CryptoSlate.
