After the Spot Bitcoin ETF race, the spree for Spot Ethereum ETFs is on. Amid the Ether ETF anticipation, it has been revealed that Kraken, the second-largest crypto exchange in the U.S., is eyeing to enter the crypto ETF custodian frenzy by following Coinbase’s lead.

Kraken To Enter Crypto ETF Custody Arena?

Currently, Coinbase serves as the custodian for eight out of the 11 Spot Bitcoin ETFs approved on January 10 this year. Kraken is hoping to mirror this approach and grab a significant share in the crypto ETF domain, according to a scoop by Fox Journalist Eleanor Terrett. Terrett recently took to X to unravel the latest development.

Moreover, Kraken seemed to have supported her claims as their official X account commented on her post with a purple heart. Since the Bitcoin ETF phase is over, Kraken might try taking over the custodian role for Spot Ethereum ETFs after the highly-anticipated May approval. Furthermore, it will position Kraken stronger in the crypto exchange domain.

This would directly pit Kraken against Coinbase in the crypto ETF custody game. Moreover, though Coinbase has acquired the custodian position for most of the Bitcoin ETFs, it doesn’t mean that it’ll give up on the Spot Ether ETF race. Furthermore, Kraken is poised for severe competition as Coinbase has already partnered with major crypto ETF players like BlackRock, Grayscale, and Franklin Templeton, which have applied for the Spot Ethereum ETF approval.

Also Read: Binance CEO Richard Teng Remains Bullish On Bitcoin, Ethereum, & BNB

Franklin Templeton Enters Spot Ethereum ETF Race

Global asset management firm Franklin Templeton has filed for a Spot Ethereum ETF to provide investors with easier access to the second-largest crypto. Joining the ranks of financial behemoths like Ark 21Shares and BlackRock, Franklin Templeton’s move reflects a growing acceptance of cryptocurrencies in traditional finance.

The filing signals the firm’s strategy to offer an investment option for direct Ethereum investments but without the complexities of digital asset handling. This approach not only saves time but also fosters transparency. Moreover, it integrates digital assets into traditional investment portfolios, enhancing accessibility and popularity.

Notably, Franklin Templeton’s proposed Spot Ethereum ETF includes the staking option, allowing the fund to earn rewards by participating in ETH’s consensus mechanism. This innovative feature bridges traditional financial instruments with Ethereum’s transactional characteristics. It sets Franklin Templeton apart from its competitors.

Also Read: Franklin Templeton Joins Ark, BlackRock in Spot Ether ETF Pursuit

The post Kraken Eyes To Enter Crypto ETF Custody Race Amid Spot Ethereum ETF Anticipation appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am