Renowned 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 prominent platform for securities transactions in the United States.
The DTCC website, known for its role in facilitating securities transactions, now features the EZET ETF in its “Create/Redeem” column, signifying its availability for creation and redemption. However, it’s essential to clarify 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 to the United States Securities and Exchange Commission (SEC).
The DTCC website regularly updates its listings to include securities eligible for trading and settlement within its systems, often after completing specific registration or compliance procedures. Yet, it’s crucial to understand that the approval status of an ETF filing ultimately rests with the SEC, according to Cointelegraph.
Franklin Templeton, with assets totaling $1.5 trillion, submitted its Form S-1 to the SEC on February 12, seeking approval for a spot Ether (ETH) ETF. If approved, the ETF would be listed as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange.
However, the SEC recently announced a delay in its decision on Franklin Templeton’s ETF application, extending the timeline for review. The SEC cited the need for further evaluation of the proposed rule change for the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The new deadline for a decision is now June 11, providing an additional 45 days for assessment.
Notably, Franklin Templeton is not alone in its pursuit of a spot Ether ETF. Industry giants like BlackRock, Grayscale, VanEck, and ARK Invest have also entered the race. However, it’s worth mentioning that the approval prospects for spot Ethereum ETFs may differ from those of spot Bitcoin ETFs, which were approved earlier this year.
According to Bloomberg ETF analyst Eric Balchunas, the chances of the SEC approving a spot Ether ETF in May were estimated to be around 35%. Balchunas highlighted the SEC’s comparatively less active stance during the Ether ETF application process compared to that of Bitcoin.
Additionally, SEC Chair Gary Gensler’s position on Ether’s classification as a security could influence the decision-making process, especially considering his reluctance to provide clarity on the matter.
