Franklin Templeton Joins Ethereum ETF Race

February 13, 2024 | by


Franklin Templeton, the asset manager known for its traditional investment approach, has recently made its entry into the world of cryptocurrencies. The company has joined the race to launch an Ethereum exchange-traded fund (ETF), according to a filing with the Securities and Exchange Commission (SEC). This move comes shortly after Franklin Templeton, along with nine other issuers, launched a spot Bitcoin ETF. While BlackRock and Fidelity have seen significant success with their Bitcoin funds, Franklin Templeton aims to expand its presence in the crypto market by venturing into the world of Ethereum.

Franklin Templeton Joins Ethereum ETF Race

Franklin Templeton, a traditional finance asset manager, has made its entry into the Ethereum ETF race by applying for a spot Ethereum exchange-traded fund. This move comes as other major asset managers, including BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco and Galaxy, and Hashdex, have also submitted applications for Ethereum ETFs in recent months. While Franklin Templeton has already launched a spot bitcoin ETF, it has not seen the same level of success as BlackRock and Fidelity, who have attracted billions of dollars in inflows for their bitcoin funds.

Background on Ethereum ETFs

Ethereum ETFs have been gaining popularity in the crypto space. These ETFs provide investors with exposure to the price movements of Ethereum without having to directly hold the cryptocurrency. The success of BlackRock and Fidelity’s bitcoin ETFs has further fueled the interest in Ethereum ETFs. These investment vehicles allow investors to gain exposure to the growing Ethereum market and potentially benefit from its future price appreciation.

Franklin Templeton’s Entry in the Race

Franklin Templeton’s recent application for an Ethereum ETF demonstrates the asset manager’s interest in expanding its crypto offerings. As a well-established player in traditional finance, Franklin Templeton’s entry adds legitimacy to the Ethereum ETF market. However, it remains to be seen how Franklin Templeton’s Ethereum ETF will perform in comparison to other issuers. Franklin Templeton’s bitcoin ETF has had a more modest start, with only around $70 million in inflows since its launch.

The SEC’s Decision

The Securities and Exchange Commission (SEC) has been delaying the approval of Ethereum ETFs. Experts have predicted that the SEC is unlikely to approve such funds before May. While traders on decentralized prediction platforms speculate a 50% chance of approval by May 31, the regulatory hurdles and strict requirements set by the SEC make the approval process challenging. The SEC has concerns and considerations regarding the regulatory framework and investor protection in the crypto market, which may contribute to the delay in approving Ethereum ETFs.

Franklin Templeton’s Crypto Push

Franklin Templeton’s interest in cryptocurrencies has been evident in its recent initiatives. Since CEO Jenny Johnson took over the company in 2020, Franklin Templeton has been actively exploring opportunities in the crypto space. One notable example is the asset manager’s adoption of the laser eyes logo on social media platform X (formerly Twitter), symbolizing its support for cryptocurrencies. These moves indicate Franklin Templeton’s commitment to embracing the crypto culture and staying relevant in the evolving financial landscape.

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Recent Price Trends

In the context of the recent price trends, both ether (ETH) and bitcoin (BTC) have experienced notable movements. Ether has climbed 5.5% in the last 24 hours and is currently trading near $2,647. On the other hand, bitcoin has reached $50,000 for the first time since late 2021. These price movements reflect the growing demand for cryptocurrencies and the increasing interest from investors.

About Franklin Templeton

Franklin Templeton is a well-established asset manager that has been operating in the traditional finance industry for years. The company offers a wide range of investment products and services to institutional and individual investors. Under the leadership of CEO Jenny Johnson, Franklin Templeton has been actively exploring opportunities in the crypto market and expanding its presence in the digital asset space. The asset manager’s recent foray into cryptocurrency reflects its commitment to adapt to the changing financial landscape.

About Ethereum ETFs

Ethereum ETFs are investment vehicles that provide exposure to the price movements of Ethereum without investors needing to directly hold the cryptocurrency. These ETFs track the performance of Ethereum and allow investors to participate in the potential growth of the Ethereum market. By offering a regulated and accessible way to invest in Ethereum, ETFs provide investors with a convenient and secure means of gaining exposure to the cryptocurrency.

SEC’s Stance on Ethereum ETFs

The SEC has expressed concerns and considerations regarding the approval of Ethereum ETFs. The regulatory body is focused on ensuring investor protection and maintaining the integrity of the markets. The SEC has emphasized the need for robust regulatory frameworks and transparent market surveillance in the crypto industry. Meeting these requirements poses challenges for ETF issuers as they navigate through the SEC’s approval process.

Future Outlook for Ethereum ETFs

The future of Ethereum ETFs is still uncertain but holds significant potential. The increasing interest from major asset managers like Franklin Templeton indicates the growing demand for regulated and accessible investment products in the crypto space. As the regulatory landscape evolves and the SEC addresses its concerns, the approval of Ethereum ETFs could open up new avenues for investors to participate in the digital asset market. The market potential for Ethereum ETFs remains optimistic, as more investors seek exposure to the potential growth of the Ethereum ecosystem.

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