Franklin Templeton has filed for a spot ether ETF, joining the latest entrants in the competitive field.
According to the filing, the purpose of the Shares is to provide a convenient avenue for investing in ether similar to direct acquisition, holding, and trading of ether on peer-to-peer networks or digital asset platforms.
Other issuers, including Ark 21Shares and BlackRock, submitted S-1s for their potential funds toward the end of last year. In January, Franklin was among nearly a dozen firms that launched a bitcoin ETF after receiving approval from the Securities and Exchange Commission.
The filing also indicates Franklin’s interest in staking the ether held by the proposed fund. While Ark 21Shares updated its prospectus last week to include staking language, this inclusion is notable as it marks a potential milestone for the intersection of traditional finance and digital assets. The filing specifies that the Sponsor may engage in staking activities through trusted providers, potentially including an affiliate of the Sponsor, and would receive staking rewards in return.
Blockworks Research analyst Spencer Hughes sees this language as significant, highlighting that approximately 25% of the total ETH supply is currently staked.
A decision on spot ETH ETFs is expected in May, with Bloomberg Intelligence analyst James Seyffart estimating a 60% chance of SEC approval for these ETFs.
