Franklin Templeton, an asset management firm, has unveiled its new Ethereum exchange-traded fund (ETF) called the “Franklin Ethereum TR Ethereum ETF” with the ticker code EZET.
The ETF has been officially listed on the Depository Trust and Clearing Corporation (DTCC) website, a prominent platform for securities transactions in the United States. Its placement in the DTCC’s “Create/Redeem” section indicates that the ETF is now open for creation and redemption, marking a significant milestone in its operational launch.
It is important to note that this listing does not equate to approval from the U.S. Securities and Exchange Commission (SEC), as the process is still pending. However, being listed on the DTCC website signifies that the ETF has successfully undergone certain registration and compliance procedures, making it eligible for trading and settlement within the DTCC’s systems. The final approval, though, depends on the SEC’s evaluation against various regulatory standards.
In February, Franklin Templeton filed a Form S-1 with the SEC to introduce a spot Ether (ETH) ETF. If approved, it will be traded as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. Nevertheless, the SEC recently announced a delay in its decision on the application, extending the review period by an additional 45 days to June 11.
Other major players in the industry, such as BlackRock, Grayscale, VanEck, and ARK Invest, are also vying for approval for their own spot Ether ETFs. However, the outlook for these Ethereum-based ETFs gaining approval from the SEC seems to differ from that of spot Bitcoin ETFs, which received approval in January.
In a recent analysis, Bloomberg ETF analyst Eric Balchunas estimated the likelihood of a spot Ether ETF being approved in May at around 35%. He highlighted the SEC’s more cautious approach compared to Bitcoin ETF applications and mentioned that the views of SEC Chair Gary Gensler on Ether and its classification as a security could impact the final decision.
For more information, the SEC is currently seeking comments on three spot Ethereum ETF filings, although analysts are not overly optimistic about their approval.