Franklin Templeton, an asset management firm, has introduced its Ethereum exchange-traded fund (ETF) called the “Franklin Ethereum TR Ethereum ETF” with the ticker code EZET. The ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website, a prominent platform for securities transactions in the US. The listing on the DTCC’s “Create/Redeem” column indicates that the ETF is now available for creation and redemption, marking a significant milestone in its operational rollout.
It is important to note that the listing on the DTCC website does not imply approval from the US Securities and Exchange Commission (SEC), as the approval is still pending. However, the listing signifies that the ETF has completed certain registration or compliance processes, allowing it to be traded and settled within the DTCC’s systems. The final approval from the SEC will depend on its assessment against various regulatory standards.
In February, Franklin Templeton filed a Form S-1 with the SEC to launch a spot Ether (ETH) ETF. If approved, it would be traded as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange. However, the SEC recently announced a delay in its decision, extending the review period by an additional 45 days to June 11.
Other industry leaders such as BlackRock, Grayscale, VanEck, and ARK Invest are also competing to obtain approval for their own spot Ether ETFs. However, the outlook for these Ethereum-based ETFs receiving approval from the SEC seems to differ from that of spot Bitcoin ETFs, which were approved in January.
ETF analyst Eric Balchunas from Bloomberg assessed the likelihood of a spot Ether ETF being approved in May at around 35%. He highlighted the SEC’s less proactive approach compared to the Bitcoin ETF applications and noted that SEC Chair Gary Gensler’s perspective on Ether and his reluctance to explicitly classify it as a security could influence the final decision.
In related news, the SEC is seeking comments on three spot Ethereum ETF filings, but analysts are not optimistic about their approval.