Franklin Templeton Files for Spot Ethereum ETF with the US SEC

TL;DR

• Franklin Templeton has become the latest entity to file for spot Ethereum ETF in the United States.

• 21Shares, Grayscale Investments, and BlackRock have all filed for a spot Ethereum ETF in recent weeks.

Franklin Templeton Files for Spot Ethereum ETF

Investment firm Franklin Templeton has filed with the US Securities and Exchange Commission (SEC) on Monday to list spot Ethereum exchange-traded fund (ETF).

It has become the latest entity to file for a spot Ethereum ETF. according to the S-1 registration statement, Franklin Templeton said the ETF will generally reflect the price of ether. The investment firm added that  Coinbase Custody Trust Company and the Bank of New York Mellon would be the custodians for ether and cash holdings, respectively.

Furthermore, shares of the ETF would be listed and traded on the Cboe BZX Exchange, Inc. The filing added that,

"The Shares are intended to offer a convenient means of making an investment similar to an investment in ether relative to acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove obstacles associated with the complexities and operational burdens involved in a direct investment in ether by providing an investment with a value that reflects the price of the ether owned by the Fund at such time, less the Fund’s expenses. The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares." 

Franklin Templeton is the latest investment firm to file for a spot Ethereum ETF. 21Shares, Grayscale Investments and BlackRock have all filed for spot Ethereum ETFs in recent weeks. 

Ether, the second-largest cryptocurrency by market cap, is up by more than 6% in the last 24 hours and is now trading above the $2,600 mark per coin.