Trillion-dollar asset manager Franklin Templeton is jumping into another crypto product and is now seeking approval for a spot Ether exchange-traded fund (ETF). Like ARK 21Shares, Franklin wants to add staking to its Ether ETF to generate additional income, according to its Feb. 12 filing.
The companies are competing with BlackRock, VanEck, Fidelity, Invesco Galaxy, Grayscale and Hashdex for regulatory approval, with final decisions due between May and August.
This week's headlines also include Bakkt's approval to raise capital. As cash was running out, the company asked regulators for permission to issue more shares over the next three years.
Meanwhile, digital asset investment manager CoinShares turned things around and turned a profit for the fourth quarter of 2023, a significant year-over-year recovery.
In this week's Crypto Biz, we look at Franklin Templeton's entry into the Ether ETF race, Ripple's new custody acquisition, Bakkt's stock sale, and CoinShares' fourth-quarter earnings.
Franklin Templeton Joins Ethereum ETF Spot Race
Franklin Templeton has become the latest Wall Street firm to file for an Ether (ETH) spot ETF in the United States. The asset management company filed the S-1 filing with the U.S. Securities Exchange Commission on February 12. If approved, it would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange. Additionally, Franklin signaled his intention to stake a portion of the ETF's Ether to produce additional income, similar to ARK 21Shares' revised S-1 filing last week. The company recently praised the network fundamentals of Ethereum, Solana and other blockchains, sparking speculation that the ETF issuer could expand its crypto services.
Ripple acquires Standard Custody & Trust, its second custody provider
Ripple acquired Standard Custody & Trust Company, a US digital asset custody provider. The company provides custody and escrow services pursuant to a charter granted by the New York State Department of Financial Services and is a qualified custodian under federal law. Standard already had ties to Ripple through its executives. Along with its subsidiaries, Ripple already owns a New York BitLicense and nearly 40 money transmission licenses in US states, he said. Terms of the agreement were not made public.
As we integrate custody deeper into Ripple's products, we see clear synergies with @StandardCustody to complement our payments and custody offerings, all with the goal of being a one-stop shop for moving, converting and storing value with blockchain and cryptocurrencies. https://t.co/N0q2VgVm2T
– Monica Long (@MonicaLongSF) February 13, 2024
Bakkt approved the sale of securities worth $150 million to stem its cash burn
Cryptocurrency company Bakkt has received regulatory approval to raise up to $150 million through the sale of its securities, just a week after the company raised concerns about its balance sheet. The company is said to have obtained approval for a “shelf registration,” which allows new issuance of securities to be sold gradually over time without requiring separate approvals. The green light will allow Bakkt to raise a total of $150 million in capital in one or more offerings over three years. Bakkt offers cryptocurrency trading and custody services. The company recently disclosed cash flow problems and requested permission to raise additional capital. Bakkt has reported eight consecutive quarters of net losses since going public in October 2021.
CoinShares Reports Revenue of $108 Million in 2023 Earnings Report
Investment platform CoinShares reported $108.5 million in annual revenue in its Q4 2023 report. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were around $32.51 million. Compared to its earnings in 2022, CoinShares posted a significant recovery in 2023. In Q4 2022, the company's EBITDA was negative $30.11 million, while its total revenue was $46.94 million. negative dollars. The company reported a 109% year-over-year increase in assets under management to $3.8 billion, driven by the recovery in digital asset prices and net inflows into its products.
Before you leave: Ether could hit $27,000 at the top of the current bull cycle, predicts investor and Ethereum community member Ryan Berckmans. As one of the main catalysts for possible appreciation, Berckmans points to the lack of selling pressure from miners since the Merge upgrade.
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