The U.S. Securities and Exchange Commission (SEC) has decided to delay the review of Franklin Templeton’s application for an Ethereum Exchange-Traded Fund (ETF).
As per a document released on the SEC’s official website, the Commission believes it is necessary to extend the review period for the proposed rule change in order to thoroughly assess the application and its associated concerns.
The SEC has until June 11 to make a decision on Franklin Templeton’s ETF application.
In a related development, Fidelity has recently submitted an S-1 form for an Ethereum ETF.
Earlier this year, Franklin Templeton applied for registration of an Ethereum ETF. If approved, Coinbase Custody Trust Company will serve as the custodian for the second-largest cryptocurrency in terms of market capitalization.
Once approved, the ETF will be listed on the Chicago Board Options Exchange (BZX). The ETF’s structure will involve using cash exclusively for the creation and redemption of shares, similar to existing Bitcoin-based instruments.
Since the successful launch of a Bitcoin ETF, numerous prominent asset managers have submitted applications for Ethereum spot ETFs. The SEC is expected to make a decision on the Ethereum spot ETF applications from VanEck and ARK/21Shares by May 23.
In another development, the Securities and Futures Commission (SFC) in Hong Kong has already given the green light for the launch of spot ETFs based on Ethereum. Despite regulatory approval, Bosera Asset Management has not disclosed the product tickers for its ETF.
The SEC is currently seeking public comments on three Ethereum spot ETF filings, with some analysts expressing caution about the prospects for approval.