Cathie Wood, founder of ARK Investment Management, expressed skepticism about the Securities and Exchange Commission's (SEC) stance on approving spot exchange-traded funds (ETFs) following cryptocurrencies beyond Bitcoin and Ethereum.
Wood's feeling was echoes in his recent remarks on the WSJ's Take On the Week podcast: “We would be surprised to see anything other than Bitcoin and Ether get approved by the SEC. »
Franklin Templeton joins the ETF race
This sentiment follows Franklin Templeton's recent filing with the SEC seeking approval to launch a spot Ethereum ETF. If approved, the deposit, submitted on February 12, would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange.
The filing indicates that Franklin Templeton plans to stake a portion of the ETF's Ether for additional revenue, similar to strategies outlined in recent ARK 21Shares filings.
–James Seyffart (@JSeyff) February 12, 2024
“The Sponsor may, from time to time, invest a portion of the assets of the Fund through one or more trusted staking providers, which may include an affiliate of the Sponsor.” indicates the file.
The asset manager with $1.5 trillion in assets under management joins several leading asset management firms, including BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale and Hashdex, which have also submitted applications for 'Ethereum spot ETF.
Franklin Templeton's Bitcoin ETF struggles with competitors
On January 11, 2024, these eight companies, including Franklin Templeton, introduced spot Bitcoin ETFs. However, Franklin Templeton's spot Bitcoin ETF has been less successful than others, raising only $77 million as of February 9.
Asset management firm BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC) attracted the most investor interest, with IBIT acquiring over $3.5 billion worth of Bitcoin over the past month, while Fidelity has seen an inflow of around $3 billion.
Meanwhile, the SEC has postponed all decisions regarding approval of an Ethereum spot ETF so far. The US SEC has postponed its decision on an application submitted by Grayscale Investments to transform its Ethereum trust offering into a spot ETF.
This also delayed BlackRock's proposal to introduce a similar product with VanEck's application for a spot Ethereum ETF, pending approval or denial by May 23. JP Morgan puts the likelihood of such a fund receiving approval before May at less than 50%.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).