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Franklin Templeton Launches Spot Ether ETF on DTCC Platform Amid SEC Review

Franklin Templeton, a prominent asset management firm, has unveiled its spot Ether exchange-traded fund (ETF), known as the Franklin Ethereum TR Ethereum ETF (EZET), on the Depository Trust and Clearing Corporation (DTCC) website, a key platform for securities transactions in the United States.

Displayed within the DTCC website’s “Create/Redeem” section, the presence of the ETF suggests it is open for creation and redemption.

However, this listing doesn’t guarantee approval for Franklin’s spot Ether ETF application with the United States Securities and Exchange Commission (SEC).

While the DTCC website commonly showcases securities eligible for trading and settlement, including ETFs that have undergone specific registration or compliance procedures, the SEC holds authority over the approval status of ETF filings. This decision hinges on diverse regulatory criteria and considerations.

Having submitted its Form S-1 to the SEC on Feb. 12, the $1.5 trillion asset management firm sought approval for a spot Ether (ETH) ETF. If given the green light, this ETF would be traded under the name “Franklin Ethereum ETF” on the Chicago Board Options Exchange.

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The SEC opted to postpone its decision regarding Franklin Templeton’s ETF application on April 23, extending the review timeline for the proposed rule change related to the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange.

This extension grants the SEC until June 11, providing an additional 45 days for thorough evaluation.

Various industry giants such as BlackRock, Grayscale, VanEck, and ARK Invest have also joined the race for spot Ether ETFs.

However, the likelihood of SEC approval for spot Ethereum ETFs differs from that of spot Bitcoin ETFs, which were approved in January.

In March, Bloomberg ETF analyst Eric Balchunas estimated the probability of the SEC approving a spot Ether ETF in May at approximately 35%.

He noted the SEC’s relatively less active stance compared to the Bitcoin ETF application process and highlighted the potential impact of SEC Chair Gary Gensler’s position on Ether, which remains unclear as Gensler has refrained from definitively classifying Ether as a security.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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