After the popularity of the spot Bitcoin ETFs in the US, a race has emerged in the applications for a spot Ethereum ETF, which global asset management firm Franklin Templeton recently joined.
The spot Bitcoin ETFs have generated significantly high investor interest in the last few weeks. The inflows into the crypto ETFs have run into billions, helping the crypto market rally recently. The success of the ETFs has led to asset management firms applying for a spot Ethereum ETF in the US as well. Franklin Templeton, the global asset management firm, was the latest applicant.
The firm submitted a regulatory filing for the ETF to the United States Securities Exchange Commission (SEC). It has proposed a unique feature in the ETF, allowing staking to create higher income. It will stake the Ether from the trust’s cold storage wallets and treat the rewards as income.
The filing said, “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 an affiliate of the Sponsor.”
Meanwhile, the race for the crypto ETFs has other applicants as well. It includes Fidelity, Grayscale, BlackRock, and other prominent investment firms. The SEC will likely make a decision regarding the ETFs by mid-2024. Since they approved the spot Bitcoin ETFs according to the expected dates, the same could also happen for these ETFs.
The news of an incoming Ethereum ETF in the US emerged in 2023. ETH was going through a price drop, and experts claimed an ETF could help reverse the trend.
A senior Franklin Templeton executive also endorsed blockchain adoption and its potential in finance. Sandy Kaul, the executive at Franklin Templeton, spoke about the use cases of crypto and their benefits in finance.
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