Fanklin Templeton’s Launch of Ethereum ETF Signals Exciting Times Ahead for Cryptocurrency Industry
- Franklin Templeton says Solana has shown “widespread adoption and continued maturation”
- The asset manager launches its second digital asset-backed ETF: Franklin Ethereum ETF (EZET)
- Franklin Templeton has agreed to completely waive fees on the first $10 billion of fund assets through January 2025
Franklin Templeton expressed confidence in the development of cryptocurrency exchange-traded funds (ETFs), claiming that “there are other exciting and significant developments” that will drive the cryptocurrency industry forward.
“In addition to Bitcoin and Ethereum, we believe there are other exciting and significant developments that will drive the cryptocurrency space forward,” the asset manager wrote in a post for X.
Franklin Templeton expressed enthusiasm for the Solana ETF and added:
“Solana has been widely adopted and continues to mature, overcoming technology growing pains and highlighting the potential of high-throughput, monolithic architectures.”
Ethereum ETF launched
Franklin Templeton’s announcement follows the asset manager’s launch of a second digital asset-backed ETF, the Franklin Ethereum ETF (EZET), which is listed on the Chicago Board Options Exchange (Cboe).
Patrick O’Connor, Global Head of ETFs at Franklin Templeton, said of the launch: “Following the successful launch of the Spot Bitcoin ETF (EZBC) in January, we are proud to add EZET to our growing digital asset ETFs in the product lineup”.
O’Connor added that the firm was “delighted” to be able to offer clients greater access to the digital asset industry through “a regulated fund structure that integrates seamlessly into traditional investment portfolios.”
As part of its rollout, Franklin Templeton agreed to completely waive fees on the first $10 billion of fund assets until January 2025.
Earlier this week, following approval from the U.S. Securities and Exchange Commission (SEC), Chicago Board Options Exchange (Cboe) announced the listing of five Ethereum ETFs. Franklin Templeton is one of them, along with 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, Invesco Galaxy Ethereum ETF and VanEck Ethereum ETF.
Data shows that investors traded more than $1 billion worth of stocks on the first day of the Ethereum ETF’s issuance, with a net inflow of $106.7 million.
Solana ETF
In July, Cboe also submitted two applications to list spot Solana ETFs on its platform: 21Shares and VanEck. The SEC filed two Form 19b-4 applications on July 8 and has until March 2025 to make a decision.
According to Cboe, the potential Solana ETF is similar to spot Bitcoin and spot Ethereum funds, adding that “much like Bitcoin and ETH, the exchange believes that SOL is resistant to price manipulation and that “there are other ways to prevent fraud.” and manipulative behaviors and practices” “exist to justify the abolition of necessary surveillance-sharing agreements.
The Rise of Cryptocurrency ETFs and the Future of Digital Assets
Franklin Templeton’s recent launch of the Franklin Ethereum ETF (EZET) signals a significant step forward in the development of cryptocurrency exchange-traded funds. With the increasing adoption and maturation of digital assets like Ethereum and Solana, the industry is poised for continued growth and innovation.
Adoption of Solana and Potential for Future Growth
Solana’s widespread adoption and technological advancements have garnered attention from investors and asset managers like Franklin Templeton. As the cryptocurrency ecosystem continues to evolve, Solana’s high-throughput capabilities and innovative architecture position it as a key player in the digital asset space.
The Impact of Ethereum ETFs on Investor Sentiment and Market Dynamics
The listing of Ethereum ETFs on major exchanges has injected new enthusiasm into the market, with significant trading volumes and inflows observed in the initial days of issuance. This trend underscores the growing interest in digital assets and the desire for regulated investment vehicles that offer exposure to cryptocurrencies.
