Franklin Templeton, a major player in asset management, has made a significant move into the cryptocurrency market with the launch of the “Franklin Ethereum TR Ethereum ETF”, known as EZET. This new Ethereum spot ETF has been listed on the Depository Trust and Clearing Corporation (DTCC), which is crucial for processing securities transactions in the US. Being included in the DTCC means that the ETF is ready for creation and redemption processes, allowing investors to adjust their positions based on market demand and keeping the ETF’s price in line with the current value of Ethereum.
At the time of writing, the price of ETH stood at US$3,249.09, showing a 3% increase in the last 24 hours.
However, it’s important to note that listing on the DTCC does not automatically imply approval from the Securities and Exchange Commission (SEC), which operates under strict regulatory criteria. Nevertheless, Franklin Templeton has already shown its intentions by submitting an S-1 form to the SEC, seeking the listing of this ETF on the Chicago Board Options Exchange under the name “Franklin Ethereum ETF”.
Franklin Templeton’s application for the launch of the Ethereum spot ETF “FRANKLIN ETHEREUM TR ETHEREUM ETF” has appeared on the DTCC website, with the Create/Redeem column indicating “Y”. The DTCC has emphasized that this is a standard practice in preparation for the launch of new ETFs.
In a recent development, however, the SEC has delayed its decision until June 11 in order to conduct a more thorough analysis of the request. This delay reflects the cautious approach the SEC has taken towards Ethereum ETF issuers, which is in contrast to previous discussions that led to the approval of Bitcoin ETFs earlier this year.
Expectations for the approval of Ethereum ETFs have been tempered, especially considering the discouraging feedback from the SEC and recent discussions suggesting a possible rejection of applications. This situation is directly influenced by the leadership of Gary Gensler at the SEC, who is known for his critical stance towards cryptocurrencies and has raised concerns about market manipulation.
The cryptocurrency market has responded with a mix of cautious optimism. While the price of Ether has shown an increase throughout the year, it still lags behind Bitcoin’s strong performance. The investment community is closely monitoring regulatory interactions, particularly after detailed discussions with Coinbase regarding the conversion of its Ethereum Trust into an ETF.
Disclaimer: The views and opinions expressed in this article, as well as those of anyone mentioned, are for informational purposes only and should not be considered as financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.