Franklin Templeton Explores Staking in Ethereum ETF Strategy

Franklin Templeton recently submitted an application for an ether ETF, signaling their entry into the growing market of financial products linked to cryptocurrencies. This application comes on the heels of the SEC’s green light for Bitcoin ETFs in January, positioning Franklin Templeton among the first wave of firms to offer such an investment vehicle.

The proposed ether ETF by Franklin Templeton aims to simplify the process for investors interested in Ethereum by eliminating the complexities associated with direct ownership and trading of the digital currency. By offering an ETF, Franklin intends to provide a more accessible option for investing in Ethereum.

Franklin Templeton is exploring the possibility of staking the Ethereum held within the fund. This strategy could allow the ETF to earn additional ether tokens as staking rewards, which would be considered income for the fund. This approach is similar to that of Ark 21Shares, which recently introduced staking language into its prospectus, distinguishing it from competitors like BlackRock and Fidelity that have not incorporated staking into their proposals.