Sunday Newsletter

Explore the latest trends, gain valuable insights, and stay informed in the dynamic cryptocurrency ecosystem.

28 April 2024

Franklin Templeton has listed its spot Ethereum ETF, called the Franklin Ethereum TR Ethereum ETF (EZET), on the Depository Trust and Clearing Corporation (DTCC) website. This move is significant, as DTCC is a major platform for securities transactions in the United States.

However, the listing on DTCC does not guarantee that the U.S. Securities and Exchange Commission (SEC) will approve Franklin Templeton’s spot Ethereum ETF application.

The DTCC website provides information about securities eligible for trading and settlement within its systems, including ETFs that have met specific registration or compliance requirements. Still, the SEC will make the final decision on the ETF based on regulatory standards.

Franklin Templeton, a $1.5 trillion asset management firm, submitted its application to the SEC for a spot Ethereum ETF on February 12. If approved, the ETF would be listed as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange.

The SEC postponed its decision on Franklin Templeton’s application on April 23, extending the timeline for a potential ruling on the proposed listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The SEC now has until June 11 to evaluate the application.

Major players in the financial industry, including BlackRock, Grayscale, VanEck, and ARK Invest, are also pursuing spot Ethereum ETF approvals. However, the odds of the SEC approving spot Ethereum ETFs differ from those of spot Bitcoin ETFs, which were approved in January.

Bloomberg ETF analyst Eric Balchunas estimated a 35% chance of the SEC approving a spot Ethereum ETF in May. He attributed this to the SEC’s less engaged stance during the Ethereum ETF application process compared to the Bitcoin ETF process.

SEC Chair Gary Gensler’s unclear position on whether Ethereum is a security could also influence the decision-making process.