Asset manager Franklin Templeton announced its application for a spot Ethereum ETF on Monday, positioning itself among eight firms aiming to launch similar products. Following the SEC's approval of 11 spot Bitcoin ETFs in January—a landmark decision for the crypto sector—interest in spot crypto ETFs, which track the real-time price of the underlying digital assets without necessitating direct purchase, has surged.

Franklin's move adds to the competition in launching spot Ethereum ETFs, a field that includes major players like BlackRock and Fidelity, which have already launched spot Bitcoin ETFs with assets of $4.18 billion and $3.49 billion, respectively. In contrast, Franklin Templeton's Bitcoin ETF trails with $77 million in assets, per BitMEX Research.

Despite its position, the veteran firm, established in 1947, continues to invest in marketing its Bitcoin ETF. Meanwhile, the SEC has delayed decisions on converting Ethereum trusts into spot ETFs, including applications from Grayscale Investments and BlackRock. VanEck was the first to file for a spot Ethereum ETF, with a decision due by May 23.

Coinbase Custody is set to oversee the Ethereum holdings for Franklin Templeton's proposed ETF, a role it also holds for BlackRock's planned Ethereum ETF.