Global investment giant Franklin Templeton has submitted an application to the U.S. Securities and Exchange Commission (SEC) for a spot market Ethereum (ETH) exchange-traded fund (ETF).
The investment firm, which currently reports $1.6 trillion in assets under management (AUM), was one of 11 applicants who received approval from the SEC last month to launch a spot Bitcoin (BTC) ETF.
If the product is approved, the Bank of New York Mellon will be the custodian of the fund’s cash holdings, according to Franklin Templeton’s filing, which was submitted on February 12th. Coinbase Custody will serve as custodian for the ETF’s Ethereum holdings.
In the application, Franklin Templeton says the ETF will offer investors a convenient way to gain exposure to ETH.
“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 Fund is not a proxy for a direct investment in Ether. Rather, the Shares are intended to provide a cost-effective alternative means of obtaining investment exposure through the securities markets that is similar to an investment in Ether.
The Fund is a passive investment vehicle and is not a leveraged product. [Franklin Holdings] does not actively manage the Ether held by the Fund.”
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney