2024-04-28
The application for Franklin Templeton's spot Ether exchange-traded fund (ETF) called the Franklin Ethereum TR Ethereum ETF (EZET) has been listed on the Depository Trust and Clearing Corporation (DTCC) website.
The DTCC website is a prominent platform for securities transactions in the United States.
The ETF can be created and redeemed as indicated in the "Create/Redeem" column on the DTCC website.
However, it's important to note that the listing of the Franklin Templeton Ethereum spot ETF on the DTCC website does not guarantee approval from the United States Securities and Exchange Commission (SEC) for Franklin's spot Ether ETF application.
The DTCC website often lists eligible securities for trading and settlement, including ETFs that have completed specific registration and compliance procedures. But the final decision on ETF approval lies with the SEC, which assesses regulatory criteria and considerations.
Franklin Templeton, a prominent asset management firm with $1.5 trillion in assets, submitted its Form S-1 to the SEC on February 12 to apply for a spot Ether (ETH) ETF. If approved, the ETF would be named "Franklin Ethereum ETF" and listed on the Chicago Board Options Exchange.
However, the SEC has postponed its decision on Franklin Templeton's ETF application and extended the review timeline until June 11, granting an additional 45 days for evaluation.
This decision delay is related to the proposed rule change for the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange.
Notably, other major industry players such as BlackRock, Grayscale, VanEck, and ARK Invest are also competing in the spot Ether ETF space.
However, the likelihood of the SEC approving spot Ethereum ETFs differs from the approval process for spot Bitcoin ETFs that occurred in January.
Bloomberg ETF analyst Eric Balchunas estimated in March that the chances of the SEC approving a spot Ether ETF in May were around 35%.
He cited the regulator's less involved approach compared to the Bitcoin ETF application process.
The decision process may also be influenced by SEC Chair Gary Gensler's stance on Ether, as he has not clarified whether Ether is considered a security.
