In a significant development, asset management firm Franklin Templeton has listed its spot Ether exchange-traded fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) website, a prominent platform for securities transactions in the United States. The ETF, named the Franklin Ethereum TR Ethereum ETF (EZET), is now available for creation and redemption on the DTCC platform.
However, this listing does not guarantee that the SEC will approve Franklin Templeton’s spot Ether ETF application. The approval status of an ETF filing is ultimately determined by the SEC based on various regulatory criteria and considerations.
The DTCC website often lists securities eligible for trading and settlement within its systems, including ETFs that have completed particular registration or compliance processes. This listing indicates that the Franklin Templeton Ethereum spot ETF has reached a certain stage in the regulatory process, but it does not necessarily mean that the SEC will greenlight the product.
Franklin Templeton submitted its Form S-1 to the SEC on Feb. 12 to apply for a spot Ether (ETH) ETF. The SEC has since postponed a potential decision on the application, extending the timeline to review the proposed rule change for the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The SEC now has until June 11 to make a decision, granting an additional 45 days for evaluation.
The spot Ether ETF race has attracted other industry giants, such as BlackRock, Grayscale, VanEck, and ARK Invest, all of whom have also submitted applications to the SEC. However, the likelihood of the SEC approving spot Ethereum ETFs may differ from the approval of spot Bitcoin ETFs, which occurred in January.
According to Bloomberg ETF analyst Eric Balchunas, the chances of the SEC approving a spot Ether ETF in May were estimated to be around 35%, citing the regulator’s less engaged stance compared to the Bitcoin ETF application process. Balchunas also mentioned that SEC Chair Gary Gensler’s stance on Ether could impact the decision, as Gensler has refused to clarify whether Ether is a security.
The listing of the Franklin Templeton Ethereum spot ETF on the DTCC website is a significant step forward, but the ultimate decision rests with the SEC. Investors and the broader crypto community will closely follow the SEC’s evaluation process and the potential approval of spot Ether ETFs in the coming months.
