Global investment giant Franklin Templeton has filed with the US Securities and Exchange Commission (SEC) for a spot Ethereum (ETH) exchange-traded fund (ETF).
The investment firm, which currently reports $1.6 trillion in assets under management (AUM), was one of eleven applicants to receive approval from the SEC last month to launch a spot Bitcoin (BTC) ETF.
If the product is approved, Bank of New York Mellon will be the custodian of the fund’s cash, according to Franklin Templeton’s Feb. 12 filing. Coinbase Custody will serve as the custodian for the ETF’s Ethereum holdings.
In the filing, Franklin Templeton says the ETF will provide investors with an easy way to gain exposure to ETH.
“The Shares are intended to provide a convenient way to make 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 are designed to remove barriers associated with the complexity and operational burden associated with a direct investment in Ether by providing an investment with a value that reflects the price of the Ether the Fund currently holds , minus the costs of the Fund.
The Fund is not a proxy for a direct investment in Ether. Rather, the Shares are intended to provide a cost-effective alternative means of gaining investment exposure through the securities markets, similar to an investment in Ether.
The Fund is a passive investment vehicle and not a leveraged product. [Franklin Holdings] does not actively manage the Ether held by the Fund.”
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