Franklin Templeton Launches Ethereum ETF, Pending SEC Approval
Franklin Templeton Launches Ethereum ETF, Pending SEC Approval
Asset management firm Franklin Templeton has made a significant move in the cryptocurrency market by launching its Ethereum exchange-traded fund (ETF), named the “Franklin Ethereum TR Ethereum ETF,” with the ticker code EZET.
The ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website, a key platform for securities transactions in the United States. This listing on the DTCC’s “Create/Redeem” column indicates that the ETF is now available for creation and redemption, marking a crucial step in its operational rollout.
It is important to note that the listing on the DTCC website does not imply approval from the U.S. Securities and Exchange Commission (SEC), as the approval is still pending. However, the listing signifies that the ETF has completed certain registration or compliance processes, making it eligible for trading and settlement within the DTCC’s systems.
Franklin Templeton had filed a Form S-1 with the SEC in February to launch a spot Ether (ETH) ETF, which would be traded as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. The SEC recently announced a delay in its decision on the application, extending the review period by an additional 45 days to June 11.
Industry giants like BlackRock, Grayscale, VanEck, and ARK Invest are also vying for 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 were approved in January.
Bloomberg ETF analyst Eric Balchunas has assessed the likelihood of a spot Ether ETF being approved in May at around 35%. He highlighted the SEC’s less proactive approach compared to Bitcoin ETF applications and mentioned that SEC Chair Gary Gensler’s views on Ether could influence the final outcome, as he has been hesitant to explicitly define it as a security.
As the cryptocurrency market continues to evolve, the approval of Ethereum ETFs could open up new investment opportunities for investors looking to diversify their portfolios. Stay tuned for updates on the SEC’s decision regarding Franklin Templeton’s Ethereum ETF and other contenders in the race for approval.
