Franklin Templeton has formally applied to create a spot exchange-traded fund (ETF) linked to the Ethereum cryptocurrency, becoming the eighth company to pursue such a product in the securities market.
In January, the US Securities and Exchange Commission (SEC) approved 11 spot Bitcoin ETFs, allowing investors to play on the cryptocurrency without actually buying and selling it. Franklin Templeton is the eighth service provider competing to launch Ethereum-linked ETFs, all of which launched Bitcoin-related spot trading products in January.
The largest players in the Bitcoin ETF sector are BlackRock and Fidelity, with respective assets of $4.18 billion and $3.49 billion, while Franklin Templeton languishes at the bottom of the rankings. According to analysts at BitMEX Research, the company’s Bitcoin ETF has assets of only $77 million – seven of the nine funds launched recently boast assets above $100 million. Franklin Templeton, founded in 1947, is not giving up and is investing in promoting its fund on Google.
In January, the SEC delayed a decision on crypto asset manager Grayscale Investments’ application to convert its Ethereum-linked trust product into a spot ETF. The regulator also delayed a similar application from BlackRock. VanEck was the first to submit an application, and a decision on it, positive or negative, is due on May 23. Coinbase Custody, a division of the Coinbase crypto exchange, has been appointed custodian of Ethereum-ETF crypto assets from Franklin Templeton and BlackRock.