Franklin Templeton has listed an Ethereum exchange-traded fund (ETF) on the DTCC
The listing on DTCC does not assure SEC approval for Franklin’s spot Ether ETF application
Asset management firm Franklin Templeton has listed its spot Ether exchange-traded fund (ETF), named the Franklin Ethereum TR Ethereum ETF (EZET), on the Depository Trust and Clearing Corporation (DTCC) website, a notable platform for securities transactions in the United States.
The “Create/Redeem” column on the DTCC website now includes the ETF, indicating its availability for creation and redemption. However, it’s important to note that the listing of the Franklin Templeton Ethereum spot ETF on the DTCC website does not guarantee approval of Franklin’s spot Ether ETF application by the United States Securities and Exchange Commission (SEC).
The DTCC website frequently features securities eligible for trading and settlement within its systems, including ETFs that have undergone specific registration or compliance processes. Nevertheless, the approval status of an ETF filing is ultimately determined by the SEC, which evaluates various regulatory criteria and considerations.
The asset management giant, with assets totaling 1.5 trillion dollars, submitted its Form S-1 to the SEC on Feb. 12, seeking approval for a spot Ether (ETH) ETF. If greenlit, the ETF would be listed as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange.
On April 23, the SEC postponed a potential decision on Franklin Templeton’s ETF application, extending the timeline for reviewing the proposed rule change for the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The SEC now has until June 11, granting an additional 45 days for evaluation.
Various industry heavyweights such as BlackRock, Grayscale, VanEck, and ARK Invest have also joined the race for spot Ether ETFs. However, the likelihood of the SEC approving spot Ethereum ETFs differs from that of spot Bitcoin ETFs prior to their approval in January.
In March, Bloomberg ETF analyst Eric Balchunas estimated the chances of the SEC approving a spot Ether ETF in May at around 35%, citing the regulator’s less engaged stance compared to the Bitcoin ETF application process. Balchunas also highlighted SEC Chair Gary Gensler’s stance on Ether, noting Gensler’s refusal to clarify whether Ether is considered a security, which could impact the decision-making process.
