Franklin Templeton joins spot Ethereum ETF race; eight applications so far

The race for spot Ethereum ETFs is heating up as asset managers vie for a piece of the burgeoning cryptocurrency market. The recent application by the $1.5 trillion asset manager Franklin Templeton adds to the competition, highlighting the growing interest in Ethereum-based investment products.

With various firms seeking approval from regulatory bodies, investors are eyeing the potential for convenient exposure to ETH's price movements through ETFs.

Franklin Templeton spot Ethereum ETF application

Asset manager Franklin Templeton officially submitted its application for a spot Ethereum ETF on February 12. The ETF, named the Franklin Ethereum ETF, is designed to track the price of ether (ETH), the native cryptocurrency of the Ethereum network.

Coinbase Custody Trust Company and the Bank of New York Mellon are slated to serve as custodians for ether and cash holdings, respectively. If approved, the ETF's shares will be listed and traded on the Cboe BZX Exchange, Inc.

Updated list of Ethereum ETF applicants

As the deadline for Ethereum ETF approvals looms, several prominent firms have thrown their hats into the ring.

VanEck, ARK 21Shares, and Hashdex, among others, filed applications as early as September 2023. Grayscale and Invesco Galaxy followed suit in October 2023, while iShares and Fidelity joined the fray in November 2023. Franklin Templeton, the latest contender, filed its application in February 2024. These companies are positioning themselves to tap into the growing demand for Ethereum-based investment options.

The spot Ethereum ETF applications follow the recent approval of similar spot Bitcoin ETF applications by the United States SEC. Although the application process was characterized by several amendment requests from the regulatory authority, the SEC finally approved all the spot Bitcoin ETF applications, which could be a driving factor for the growing number of spot Ethereum ETF applications.

And just like Bitcoin (BTC) price, the price of Ethereum (ETH) has also been reacting to the developments. At press time, ETH was trading at $2676.25, up 15% in the last seven days.