SEC Delays Decision on Franklin Templeton’s Ethereum ETF Approval

The U.S. Securities and Exchange Commission (SEC) has once again delayed its decision on the approval of Franklin Templeton’s spot Ethereum exchange-traded fund (ETF), pushing the new deadline to June 11, 2024. This latest postponement is part of a series of delays that the SEC has implemented on various cryptocurrency ETF proposals in recent months.

Franklin Templeton initially filed the S-1 registration statement for the Franklin Ethereum ETF back in February 2024. The ETF is designed to track the price of Ethereum, with Coinbase Custody Trust Company and the Bank of New York Mellon serving as custodians.

The SEC cited the need for more time to review the proposed rule changes and any potential issues that may arise from them as the reason for the delay. The commission stated that the extension would allow them to thoroughly consider the proposed rule change and the concerns raised.

This decision on Franklin Templeton’s ETF is part of a broader trend, as other Ethereum ETF applications from financial giants VanEck and BlackRock have also been postponed by the SEC. The SEC’s cautious approach to cryptocurrency-based ETFs reflects the complexity of regulating these relatively new financial instruments.

Despite the setbacks, the market impact of potential Ethereum ETF approvals remains significant. Analysts, including those at JPMorgan, have tempered expectations for short-term approval but acknowledge the positive impact that spot Bitcoin ETFs have had on the market. Approval of Ethereum ETFs could similarly boost the cryptocurrency market.

Interestingly, despite the delay in the SEC’s decision, the price of Ethereum (ETH) has remained bullish. At the time of writing, ETH was trading at $3,234, marking a 1.52% increase from the day’s low.

As the cryptocurrency market continues to evolve, investors and industry stakeholders will be closely monitoring the SEC’s decisions on these ETF proposals and their potential impact on the market.