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- VeChain is moving towards institutional adoption through its partnership with Franklin Templeton, BitGo, and Keyrock.
- A VET ETF might make headlines soon, as the SEC hints at potential SOL ETF approval.
The VeChain (VET) recently formed a new alliance with Franklin Templeton, BitGo, and Keyrock. This partnership opens the door for the potential launch of a spot VET exchange-traded fund (ETF).
The Road to a Spot VET ETF Launch
VeChain Ambassador Sebastian shared the details of the new partnership in a series of X posts.
Sebastian began by stating that the memecoin era is coming to an end. According to him, institutions are seeking compliance, liquidity, and real-world infrastructure.
Sebastian thinks this shift is a win for the VeChain platform, considering its collaboration with Franklin Templeton, BitGo, and Keyrock.
He emphasized that Franklin Templeton has integrated VeChain through its tokenized fund, BENJI. As we reported last week, the BENJI platform enables tokenized access to $780 million Franklin OnChain U.S. Government Money Fund (FOBXX).
Sebastian added that Franklin Templeton is not new to ETFs. The $1.5 trillion asset manager launched BENJI, the first U.S.-registered tokenized fund, on Stellar and Ethereum. Thus, through its integration with VeChain, Sebastian thinks Franklin Templeton perceives VET as an ETF-grade infrastructure.
Notably, the partnership also involves BitGo and Keyrock. While Bitgo will serve as a custody provider for VeChain, Keyrock will offer its derivatives capabilities.
Sebastian pointed out that ETF issuers usually demand regulated custody and infrastructure for stablecoins, staking, and tokenization, which Bitgo already provides. As we discussed earlier, VeChain said its partnership with BitGo brings a new level of trust and risk management to the VeChainThor ecosystem.
BitGo also plays a key role in the VET ETF pathway. Already, BlackRock, WisdomTree, and other ETF issuers use BitGo as the firm offers a compliance bridge between DeFi and TradFi.
On its part, Keyrock, a top-tier market maker and an official VeChain validator, provides compliant liquidity. Sebastian noted that this is one of the hardest ETF requirements to meet. In addition to liquidity, Keyrock offers tight spreads for $VET and $VTHO, and resilience during market stress.
The VeChain ambassador added that active users in the VeBetter ecosystem have grown to more than 4 million. Combined with VeChain’s role in ESG, sustainability, and tokenization, Sebastian thinks the preconditions are lining up for a VET launch.
Is the SEC Ready?
Sebastian concluded that VeChain is ETF-ready, based on its alliance with Franklin Templeton, BitGo, and Keyrock. However, the U.S. Securities and Exchange Commission (SEC) has stalled on approvals of a spot altcoin-based ETF.
The ETF race began in 2024 after the SEC approved the spot Bitcoin (BTC) and Ethereum (ETH) ETFs. Since then, the market has witnessed an increase in interest in cryptocurrencies from investors and financial institutions.
Asset managers like VanEck and Bitwise have filed for a Solana (SOL) ETF. While Franklin Templeton filed to launch an XRP ETF, a VET ETF is yet to make the headlines.
Note that the SEC delayed multiple altcoin ETF applications in May, including those tied to SOL, XRP, Cardano (ADA), and Litecoin (LTC).
In June and July, speculation intensified over SOL ETF approvals. This comes after the SEC requested amended S-1 filings focused on in-kind redemptions and staking.
Meanwhile, the VET token appears to have benefited from the crypto ETF discussions. Within the past 24 hours, VET has increased by 2.4% to $0.02318. In a recent study we reviewed, Coincodex projected a potential peak price of $0.030575 in August.
