Asset management titan Franklin Templeton has recently submitted an application for an Ethereum-based exchange-traded fund (ETF), despite the cryptocurrency’s price remaining largely unaffected by the announcement. With a $1.5 trillion portfolio under management, Franklin’s entry signifies a growing interest in Ethereum ETFs alongside other market leaders. Previously, BlackRock and Fidelity have also filed for similar products, with the industry eagerly awaiting regulatory decisions on these applications.
Competition Intensifies for Ethereum ETFs
The Ethereum ETF landscape is becoming increasingly competitive. Notably, BlackRock and Fidelity, two financial behemoths, are anticipating regulatory feedback on their own spot Ethereum ETF proposals. Industry observers believe BlackRock may successfully accelerate the approval process, based on their Bitcoin ETF achievements. The distinct characteristics of Ethereum, including its staking mechanism and initial coin offering (ICO) history, present unique considerations compared to Bitcoin, particularly regarding centralization concerns.
Franklin’s Current Crypto Endeavors
Franklin Templeton is not new to the crypto ETF market, already managing a spot Bitcoin ETF known as EZBC. However, this fund has been one of the lower performing ETFs, with a Bitcoin holding value of $72.5 million as of early February. Nonetheless, Franklin’s move into the Ethereum ETF space is welcomed, adding another contender in the market.
Crucial dates for the ETF decisions are forthcoming, as depicted by an image shared by James from Bloomberg. The ETF applications from BlackRock and Fidelity could face their second potential delay in early next month. Definitive rulings are expected between late May and early August 2024. If the Securities and Exchange Commission (SEC) maintains the precedent set by Bitcoin ETF approvals, all decisions, whether approbations or rejections, should be disclosed by the end of May.
The timeline for regulatory responses is narrowing, and the investment community remains on alert for updates that will shape the accessibility of Ethereum as an investment product through ETFs. Franklin’s entry heralds a possible expansion in Ethereum investment vehicles, contingent upon the SEC’s forthcoming rulings.