Franklin Templeton spot Ethereum ETF faces SEC’s postponement
The opening of an Ethereum ETF by Franklin Templeton in the U.S. has been delayed by the SEC. The regulatory body has extended the period for action on the proposed rule change in order to thoroughly consider the issues surrounding it. The SEC has until June 11 to make a decision on Franklin Templeton’s application.
In February, Franklin Templeton applied to register a spot in the Ethereum ETF. If approved, Coinbase Custody Trust Company will act as the custodian for the second-largest cryptocurrency by market capitalization. The ETF will be listed on the Chicago Board of Options BZX Exchange and will use only cash to create and redeem shares, similar to Bitcoin-based instruments.
Following the successful launch of the Bitcoin ETF, several asset managers have submitted applications to create spot ETFs on Ethereum. The SEC has until May 23 to give final approval for Ethereum spot ETF applications from VanEck and ARK/21Shares.
The Hong Kong Securities and Futures Commission (SFC) has already given approval for the launch of spot ETFs based on Ethereum. However, Bosera Asset Management, which received regulatory approval, has not disclosed the product tickers.
The SEC is seeking comments on three spot Ethereum ETF filings, but analysts are not optimistic about their prospects.
