As outlined in the company’s filing with the US Securities and Exchange Commission (SEC) on Form S-1, Franklin Templeton has selected Coinbase Custody Trust Company and BNY Mellon to serve as custodial services for the ETF. These institutions will be responsible for overseeing the security and management of the cryptographic keys that control the underlying assets of the ETF.
Franklin Templeton plans to launch its cryptocurrency exchange-traded fund on the Chicago Board Options Exchange (CBOE BZX), aiming to provide investors with easy access to ether without the operational complexities associated with investing directly in cryptocurrency. The company’s approach aligns with the redemption policy of BlackRock and ARK Invest, allowing investors to redeem future fund shares in cash.
Notably, Franklin Templeton has expressed optimism about the future development of Ethereum and other first-layer networks like Solana. This positive sentiment was visualized by representatives of the company, who sported red laser eyes in photos on social networks. This trend is often embraced by crypto enthusiasts, and even US President Joe Biden recently joined in, despite never publicly supporting cryptocurrencies.
It is worth mentioning that the SEC recently delayed a decision on Invesco Galaxy’s application to launch a spot Ethereum ETF. This delay was attributed to the regulator’s desire to first comprehend the workings of Ethereum’s Proof-of-Stake (PoS) consensus algorithm, which the blockchain recently transitioned to. Nevertheless, industry analysts foresee the SEC approving the launch of ether spot ETFs in May of this year, citing Standard Chartered Bank’s forecast.