Franklin Templeton, an investment firm, has taken the first step in launching an Ethereum (ETH) Exchange-Traded Fund (ETF). This move puts them in line with other asset managers who are seeking approval from the Securities and Exchange Commission.
The firm has filed an S-1 registration statement for the Franklin Ethereum ETF, which will track the price of Ether.
Coinbase Custody Trust Company and Bank of New York Mellon have been chosen as the custodians for the fund’s Ether and cash holdings, respectively.
The ETF shares will be listed and traded on the Cboe BZX Exchange, Inc., according to the filing. According to the filing, “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 ETF has been designed to simplify the complexities and operational burdens of investing in Ether directly. It will reflect the value of the Ether owned by the Fund, minus its expenses, at any given time.
The filing states, “The Authorized Participants will deliver only cash to create Shares and will receive only cash when redeeming Shares.”