Key Takeaways:
- Franklin Templeton has listed its spot Ether ETF, the Franklin Ethereum TR Ethereum ETF (EZET), on the DTCC platform, crucial for U.S. securities transactions.
- The listing on DTCC does not guarantee SEC approval for the ETF; final approval is contingent on meeting stringent regulatory standards.
- The SEC has delayed its decision on the Franklin Templeton’s spot Ether ETF application until June 11, amidst broader industry moves toward similar Ether ETF offerings.
Franklin Templeton, a global asset management firm with assets worth $1.5 trillion, has made a significant move in the cryptocurrency space by listing its spot Ether exchange-traded fund (ETF) — the Franklin Ethereum TR Ethereum ETF (EZET) — on the Depository Trust and Clearing Corporation (DTCC) platform.
This platform plays a critical role in the securities transactions sector within the United States.
🚨 BREAKING 🚨
— Ash Crypto (@Ashcryptoreal) April 27, 2024
FRANKLIN TEMPLETON ETHEREUM SPOT ETF HAS BEEN ADDED ON DTCC ETF LIST
THE DEADLINE FOR ETH ETF APPROVAL IS IN MAY
SOMETHING SIMILAR HAPPENED WITH BLACKROCK BITCOIN ETF TOO BEFORE IT GOT APPROVED pic.twitter.com/J0oZkNfnqv
The DTCC’s “Create/Redeem” section now displays the ETF, signaling its availability for both creation and redemption.
It’s important to note, however, that this listing on the DTCC does not assure approval from the United States Securities and Exchange Commission (SEC) for Franklin’s application for a spot Ether ETF.
While the DTCC often lists securities eligible for trading and settlement, including ETFs that have met certain registration or compliance criteria, the ultimate approval for any ETF depends on the SEC.
This body evaluates each filing based on a complex set of regulatory standards and considerations.
Franklin Templeton took a formal step towards securing this approval by submitting its Form S-1 to the SEC on February 12.
If greenlit, the ETF will be named “Franklin Ethereum ETF” and will trade on the Chicago Board Options Exchange.
As of now, the SEC has deferred its decision regarding Franklin Templeton’s application.
Franklin Templeton lists its #EthereumETF on the DTCC website. Is this a sign that their ETF application will be approved? pic.twitter.com/xdMWRUeL18
— CryptoSavingExpert ® (@CryptoSavingExp) April 27, 2024
Originally slated for a decision by April 23, the SEC has now extended the review period to June 11, providing an additional 45 days to assess the proposed rule change for the listing and trading of shares of the Franklin Ethereum Trust on the Cboe BZX Exchange.
This application is part of a broader trend, with other major industry players like BlackRock, Grayscale, VanEck, and ARK Invest also competing in the spot Ether ETF market.
The odds of SEC approval for such ETFs vary, particularly in comparison to the earlier spot Bitcoin ETFs approved in January.
In March, Bloomberg ETF analyst Eric Balchunas pegged the chances of SEC approval for a spot Ether ETF in May at around 35%, noting the regulatory body’s current approach to Ether differs from its earlier Bitcoin ETF processes.
Yeah our odds of eth ETF approval by May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5mo out for btc spot are not there this time. Note: 35% isn't 0%, still… https://t.co/QWQOGZjDC5
— Eric Balchunas (@EricBalchunas) March 11, 2024
Furthermore, SEC Chair Gary Gensler’s refusal to clarify whether Ether is considered a security adds another layer of uncertainty to the approval process.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
Check Victor out on:
