The news of the availability of spot BTC ETFs has shaken the digital asset world, pushing Bitcoin (BTC-USD) to the $50,000 mark. Ethereum ETFs advocates are expecting a similar effect, while well-known fund managers are preparing for the challenge and filling out the appropriate forms. If the SEC makes a positive decision soon, Ethereum (ETH-USD) holders could see a return to 2022 highs.
Franklin Templeton (BEN)
Since its founding in August 1947, this international asset management company has presented itself as a reliable investment partner. At its headquarters in San Mateo, California, it develops detailed plans for the efficient and safe investment of clients’ funds. Thanks to its strategic vision and the tireless work of its analysts, Franklin Templeton (NYSE:BEN) has accumulated $1.4 trillion in assets under management.
Depending on the client’s risk appetite, the company offers various instruments, with its funds covering a wide range of asset types: from stocks to fixed-income investments. Ethereum exchange-traded funds can expand the list of these.
Approval of the SEC filing could strengthen Franklin Templeton’s position and meet the growing demand for Ethereum investments. The move is in line with Franklin Templeton’s broader strategy to expand its presence in the cryptocurrency market. Such Ethereum ETFs could lead to a boom in the market.
BlackRock (BLK)
BlackRock (NYSE:BLK) has $9 trillion in assets under management, making it the record holder in terms of assets under management. Along with retail investors among its clients, the financial giant also has pension funds, insurance companies, and other institutional clients who use its products.
The company has set out to democratize investing and is a recognized expert in passive investment strategies. Recently, it has added a Bitcoin ETF to its asset list, expanding the choice of products for investors. Now, they are not limited to standard options such as stocks, real estate, and other securities.
Since 2017, the company has modified its attitude towards crypto assets. Clients’ interest in blockchain technology has grown during this period, and BlackRock has adapted to the changes. The filing for iShares Ethereum Trust demonstrates the company’s readiness to enter the Ethereum ETFs arena. The strategic move has resonated with the public. The news of the filing immediately affected the market and the price of Ether rose by 1.19%.
VanEck (DAPP)
VanEck Vectors Digital Transformation ETF (NASDAQ:DAPP) surpassed $100 million in AUM and served as an indicator of the growing interest in digital finance. The success of spot Bitcoin exchange-traded funds has led to a growing interest towards Ethereum ETFs. VanEck has capitalized on this hype and filed a Form S1-A for a spot Ethereum ETF. Although the SEC decided not to rush into a decision, it is obliged to answer by the end of May.
The postponement of the SEC’s decision is understandable. The complexity and uncertainty of the cryptocurrency market slow down interaction with regulators. Nevertheless, the 240-day deadline for this body to make a decision indicates a turning point for VanEck this spring.
VanEck was not the only one to file a complaint with the SEC. But this company is one of the first ETF providers. The firm applied for the Bitcoin ETF back in 2017. Early entry into the market showed a deep understanding of investor needs and trends.
Crypto-linked assets under VanEck’s management are approaching $1 billion. And with an innovative approach, this mark can further grow. The company has a successful experience in crypto assets management.
Fidelity
Fidelity Digital Assets, a subsidiary of Fidelity Investments, has been providing offline custody solutions for cryptocurrencies since the mid-2010s. Institutional investors can rely on it when it comes to trading or cold storage.
The company was among the first to insist on the approval of crypto ETFs and trusts related to cryptocurrencies. Now Fidelity continues to be at the forefront of investor empowerment, offering custody and trading services for accredited investors.
Digital literacy for customers is an important vector of the company’s development. With the help of its educational materials, Fidelity promotes informed decisions on the inclusion of certain assets in the portfolio.
The introduction of cryptocurrency 401(k) accounts for employers and their employees is another evidence of Fidelity’s socially responsible and modern approach. These accounts offer access to Bitcoin and utilize the same custody, clearing, and settlement services that Fidelity has established for institutional investors.
Invesco Galaxy (IVZ)
$1.5 trillion of assets under management is an indicator of Invesco’s (NYSE:IVZ) massive scale. The company operates in 25 countries and provides financial services in almost every corner of the world.
This trusted name in the investment industry offers not only mutual funds but also funds with special investment strategies. Clients appreciate this diversity and use a wide range of ways to diversify their investments.
Invesco recently launched a bid to launch an Ethereum ETF in partnership with Galaxy Digital (OTCMKTS:BRPHF). The two companies previously filed a joint application to create a BTC-equivalent product. Galaxy Digital Funds will act as the executing agent, facilitating the sale of the ether by the trust.
Since 1978, Invesco has managed to prove itself as a reliable player in the mutual fund industry. This reputation can also play into its hands in the field of crypto finance. Its 8,400 employees work to ensure that investors have no reason to doubt Invesco’s expertise. Receiving a favorable response from the SEC could become a turning point for the company and its competitive advantage.
On the date of publication, Julia Magas did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
