Asset manager Franklin Templeton has officially listed its spot Ethereum exchange-traded fund (ETF), named Franklin Ethereum TR Ethereum ETF (EZET), on the Depository Trust and Clearing Corporation (DTCC) website, a significant U.S. securities trading platform.
The ETF is categorized under the "Create/Redemption" section of the DTCC website, indicating its availability for creation and redemption. However, it's essential to note that the listing on the DTCC website does not guarantee approval from the U.S. Securities and Exchange Commission (SEC) for Franklin's application for a spot Ethereum ETF.
Franklin Templeton, a renowned asset manager with assets totaling $1.5 trillion, filed an S-1 form with the SEC on February 12, proposing a spot Ethereum (ETH) ETF. If greenlit, this ETF will be traded on the Chicago Board Options Exchange under the name “Franklin Ethereum ETF.” Despite this initiative, the SEC recently postponed its decision on the Franklin Templeton ETF application, extending the review period until June 11.
It's worth noting that several other industry giants, including BlackRock, Grayscale, VanEck, and ARK Invest, have also entered the race for a spot Ethereum ETF. However, the likelihood of SEC approval for such an ETF differs from the approval chances for a spot Bitcoin ETF, particularly evident in the SEC's cautious approach towards crypto assets.
Bloomberg ETF analyst Eric Balchunas estimated in March that the probability of SEC approval for a spot ETH ETF in May stood at around 35%. This estimation considers the comparative regulatory environment surrounding Ethereum compared to Bitcoin. Moreover, the stance of SEC Chairman Gary Gensler on ether remains uncertain, as he has refrained from clarifying whether ether qualifies as a security, potentially impacting the decision-making process.
