Franklin Templeton, a prominent player in the asset management industry, has made a significant move into the world of cryptocurrencies with the introduction of the “Franklin Ethereum TR Ethereum ETF,” known as EZET. This new Ethereum spot ETF has been listed on the Depository Trust and Clearing Corporation (DTCC), which plays a crucial role in processing securities transactions in the United States. The ETF’s inclusion in the DTCC indicates that it is prepared for the creation and redemption processes, enabling investors to adjust their positions based on market demand and maintain the ETF’s price in line with the current value of Ethereum.
At the time of writing, the price of ETH stands at $3,249.09, reflecting a 3% increase in the past 24 hours.
However, it is important to note that listing on the DTCC does not automatically imply approval from the Securities and Exchange Commission (SEC), which operates under strict regulatory criteria. Nevertheless, Franklin Templeton has already expressed its intentions by submitting an S-1 form for this ETF to the SEC, with the aim of listing it on the Chicago Board Options Exchange under the title “Franklin Ethereum ETF.”
Franklin Templeton’s application for the launch of the Ethereum spot ETF, “FRANKLIN ETHEREUM TR ETHEREUM ETF,” has been listed on the DTCC website, and the Create/Redeem column indicates a positive status. The DTCC has emphasized that this is a standard procedure in preparation for the launch of new ETFs.
However, there has been a recent development where the SEC has delayed its decision until June 11 in order to conduct a more thorough analysis of the request. This delay reflects the cautious approach between Ethereum ETF issuers and the SEC, which has been less favorable compared to previous discussions that led to the approval of Bitcoin ETFs earlier this year.
Expectations for the approval of Ethereum ETFs have been tempered, especially considering the discouraging feedback from the SEC and recent talks that suggest a possible rejection of applications. This situation is directly influenced by the leadership of Gary Gensler at the SEC, who is known for his critical stance towards cryptocurrencies and has raised concerns about market manipulation.
The cryptocurrency market has responded with a mix of cautious optimism. While the price of Ether has shown an increase throughout the year, it still pales in comparison to Bitcoin’s strong performance. The investment community is closely monitoring regulatory interactions, particularly after in-depth discussions with Coinbase regarding the transformation of its Ethereum Trust into an ETF.
Disclaimer: The opinions expressed in this article are solely for informational purposes and do not constitute financial, investment, or any other form of advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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