Franklin Templeton Joins Race for Ethereum ETF

Franklin Templeton lists its Ethereum ETF (EZET) on DTCC but awaits SEC approval, the decision is expected by June 11th.

The Franklin Ethereum TR Ethereum ETF (EZET), an asset management firm’s spot Ether exchange-traded fund (ETF), has been listed on the Depository Trust and Clearing Corporation (DTCC) website, a significant venue for securities transactions in the United States. 

The Franklin Templeton Ethereum spot ETF is listed alongside its creation and redemption availability in the “Create/Redeem” column of the DTCC website. However, the Franklin Templeton Ethereum spot ETF’s listing on the DTCC website does not guarantee that the firm will be granted approval for its spot Ether ETF application with the United States Securities and Exchange Commission (SEC).

DTCC websites frequently list eligible securities for trading and settlement within their systems, including ETFs that have completed specific registration or compliance procedures. Nevertheless, the SEC determines the approval status of an ETF filing by many regulatory criteria and factors.

The asset management firm, valued at $1.5 trillion, filed Form S-1 with the SEC on February 12 to obtain a spot Ether (ETH) ETF. The Chicago Board Options Exchange listed the ETF as “Franklin Ethereum ETF” if it were to be approved.

On April 23, the SEC deferred a possible verdict regarding Franklin Templeton’s ETF application. The SEC announced that the deadline for reviewing the proposed rule change regarding the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange has been extended. The SEC has been granted an additional 45 days to conduct its evaluation until June 11. 

Additional industry titans, including ARK Invest, BlackRock, Grayscale, and VanEck, have also entered the spot Ether ETF race. In contrast, the probability of spot Ethereum ETFs being approved by the SEC is distinct from that of spot Bitcoin ETFs before their January approval.

Eric Balchunas, an ETF analyst at Bloomberg, estimated in March that the likelihood of the SEC approving a spot Ether ETF in May was approximately 35%. He based this estimation on the regulator’s comparatively calmer approach during the application process for Bitcoin ETFs. Furthermore, he stated that the decision process might be influenced by SEC Chair Gary Gensler’s position on Ether, given Gensler’s refusal to specify whether Ether constitutes a security.