Cathie Wooden, founding father of ARK Funding Administration, has expressed skepticism relating to the Securities and Trade Fee’s (SEC) stance on approving spot exchange-traded funds (ETFs) following cryptocurrencies past Bitcoin and Ethereum.
Wooden’s sentiment was echoed in her latest remarks on WSJ’s Take On the Week podcast: “We’d be shocked to see something however Bitcoin and Ether being accredited by the SEC.”
Franklin Templeton Joins the ETF Race
This sentiment follows Franklin Templeton’s latest submitting with the SEC for approval to launch a spot Ethereum ETF. If accredited, the submitting, submitted on February 12, can be listed because the “Franklin Ethereum ETF” on the Chicago Board Choices Trade.
The submitting states that Franklin Templeton plans to stake a portion of the ETF’s Ether for added earnings, just like methods outlined in ARK 21Shares’ latest functions.
Franklin Templeton simply joined the spot #Ethereum ETF race. pic.twitter.com/zJvk9seXe3
— James Seyffart (@JSeyff) February 12, 2024
“The Sponsor might, infrequently, stake a portion of the Fund’s property by a number of trusted staking suppliers, which can embody an affiliate of the Sponsor.” the submitting said.
The asset supervisor with $1.5 trillion in AUM joins a number of outstanding asset administration companies, together with BlackRock, VanEck, Constancy, Invesco Galaxy, Grayscale, and Hashdex, who’ve additionally submitted functions for spot Ethereum ETFs.
Franklin Templeton’s Bitcoin ETF Struggles Amidst Opponents
On January 11, 2024, these eight companies, together with Franklin Templeton, launched spot Bitcoin ETFs. Nonetheless, Franklin Templeton’s spot Bitcoin ETF has been much less profitable in comparison with others, gathering solely $77 million by February 9.
The iShares Bitcoin Belief (IBIT) from asset administration agency BlackRock and Constancy’s Sensible Origin Bitcoin Fund (FBTC) have skilled the best investor curiosity, with IBIT buying greater than $3.5 billion price of Bitcoin over the past month, whereas Constancy has noticed an inflow of roughly $3 billion.
In the meantime, the SEC has postponed all selections relating to approving a spot Ethereum ETF up up to now. The U.S. SEC postponed its ruling on an software submitted by Grayscale Investments searching for to remodel its Ethereum belief providing right into a spot ETF.
It additionally delayed BlackRock’s proposal to introduce an identical product with VanEck’s software for a spot Ethereum ETF, pending approval or denial by Could 23. JP Morgan assesses the chance of such a fund receiving approval earlier than Could at beneath 50%.
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