Franklin Templeton launches Ethereum ETF, listed on DTCC
Asset management firm Franklin Templeton has launched its Ethereum exchange-traded fund (ETF), dubbed the “Franklin Ethereum TR Ethereum ETF” and coded as EZET. The Ethereum spot ETF has been listed on the Depository Trust and Clearing Corporation website, a significant platform for securities transactions in the United States.
The DTCC website’s Create/Redeem column lists the ETF, indicating its availability for creation and redemption. This is a crucial aspect of ETFs, as it allows for adjusting the supply of ETF shares in response to demand, helping keep the ETF’s market price close to its net asset value.
The listing of the Franklin Templeton Ethereum spot ETF on the DTCC website does not necessarily indicate that the S-1 filing submitted to the United States Securities and Exchange Commission (SEC) for a spot Ether ETF has been approved.
The DTCC website often lists securities that are eligible for trading and settlement within its systems, which can include ETFs that have completed particular registration or compliance processes. However, the approval status of an ETF filing is determined by the SEC based on various regulatory criteria and considerations.
The 1.5 trillion dollar asset management firm submitted the S-1 filing with the United States Securities Exchange Commission on Feb. 12 to apply for a spot Ether (ETH) ETF. It would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange if approved.
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The SEC postponed a potential decision on Franklin Templeton’s Ethereum spot ETF application on April 23. The SEC said it extended the timeline to review the proposed rule change for the listing and trading Franklin Ethereum Trust shares on the Cboe BZX Exchange. The commission now has until June 11, granting an additional 45 days for evaluation.
Franklin Templeton’s Ethereum spot ETF being listed on the Depository Trust and Clearing Corporation website aligns Franklin Templeton with other industry giants like BlackRock, Grayscale, VanEck, and ARK Invest, which have also entered the Ethereum ETF race. However, the outlook for Ethereum-based funds differs from that of their Bitcoin counterparts.
Bloomberg ETF analyst Eric Balchunas previously estimated chances of the SEC approving a spot Ether ETF in May at around 35% in March, citing the regulator’s less engaged stance compared to the Bitcoin ETF approval process. He also mentioned that SEC Chair Gary Gensler’s stance on Ether could impact the decision process, as Gensler has refused to clarify whether Ether is a security.
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