SEC Approval Sought for New Regulations
Franklin Templeton, an asset management firm, has introduced its Ethereum exchange-traded fund (ETF) under the name “Franklin Ethereum TR Ethereum ETF,” with the code EZET. The ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website, a prominent platform for securities transactions in the US. The listing on the DTCC’s “Create/Redeem” section indicates that the ETF is now available for creation and redemption, marking a significant milestone in its operational rollout.
It is important to note that the listing does not signify approval from the US Securities and Exchange Commission (SEC), as the approval is still pending. However, the listing on the DTCC website indicates that the ETF has completed certain registration and compliance processes, making it eligible for trading and settlement within the DTCC’s systems. The final approval from the SEC will depend on its assessment against various regulatory standards.
In February, Franklin Templeton filed a Form S-1 with the SEC, seeking approval to launch a spot Ether (ETH) ETF. If approved, it would be traded as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. However, the SEC recently announced a delay in its decision on the application, extending the review period by an additional 45 days until June 11.
Other major players in the industry, including BlackRock, Grayscale, VanEck, and ARK Invest, are also competing to obtain approval for their own spot Ether ETFs. However, the prospects for these Ethereum-based ETFs gaining approval from the SEC seem to differ from those for spot Bitcoin ETFs, which received approval in January.
According to Bloomberg ETF analyst Eric Balchunas, the likelihood of a spot Ether ETF being approved in May is estimated to be around 35%. Balchunas highlighted the SEC’s less proactive approach compared to the Bitcoin ETF applications. He also mentioned that the views of SEC Chair Gary Gensler on Ether and his hesitance to explicitly define it as a security could influence the final outcome.
