Ethereum vs SEC: What next for Franklin Templeton Investments’ ETF

ETH

As a researcher with experience in the crypto market, I’m excited about Franklin Templeton listing its Ethereum [ETH] ETF (EZET) on the DTCC website. This is a significant step towards institutional adoption of Ethereum and could potentially lead to increased demand for the cryptocurrency.

The excitement within the Ethereum [ETH] community surged following the announcement that Franklin Templeton Investments’ Ethereum-backed ETF had been added to the DTCC’s (Depository Trust & Clearing Corporation) listing.

As an analyst, I can say that it’s significant news for Franklin Templeton’s Ethereum Trust (EZET) to be listed with the Depository Trust and Clearing Corporation (DTCC). This means that institutional investors will have easier access to settle and clear trades involving EZET shares. Essentially, DTCC serves as a critical intermediary in the US financial markets for institutional transactions of securities. Therefore, this listing should enhance the marketability and liquidity of EZET among larger investors.

As a researcher, I’ve come across the information that the Securities and Exchange Commission (SEC) holds the ultimate authority in granting approvals. Regrettably, despite Franklin Templeton’s application, they have not given their approval yet.

Delay on Franklin Templeton Investments ETH ETF

As a crypto investor, I’ve closely followed the developments regarding Franklin Templeton’s spot Ethereum ETF proposal. On the 23rd of April, however, the US Securities and Exchange Commission (SEC) surprised us by delaying their decision once again. They stated that they needed more time to review the application thoroughly. So for now, we’ll have to wait a little longer to see if this ETF will become a reality.

The Commission decides to allow more time for addressing the suggested rule modification. This will enable them to thoroughly examine the proposal and the concerns it raises before taking any action.

As an analyst, I’ve observed that the Securities and Exchange Commission (SEC) has put off decisions on other prospective applicants, including BlackRock, Van Eck, and Grayscale. With the May 2024 deadline looming, the denial of their applications seems to be a growing possibility.

As a researcher studying the Bloomberg ETF team’s predictions, I can share that James Seyffart and Eric Balchunas have kept the probability of May approval for a specific event under 30% based on their analysis.

During a recent interview, Seyffart expressed the same viewpoint and indicated that an approval could potentially occur as early as 2025.

“It seems unlikely that it will occur towards the end of this year; the chances are slightly in favor. However, 2025 appears to be a more viable option, but I’ll have a clearer understanding after reviewing the rejection notices.”

Justin Sun, Tron founder, also expected May rejection, stating that,

“The cryptocurrency sector must continue to invest time and effort in educating regulators about our industry over the long term.”

Although earlier declarations identified Ethereum as distinct from securities such as Bitcoin, the Securities and Exchange Commission (SEC) has yet to clearly define Ethereum’s status.

Due to the ambiguity, ConsenSys, the company responsible for MetaMask wallet, initiated a legal action against the Securities and Exchange Commission (SEC) last week, seeking a judicial determination regarding the classification of Ethereum.

Since mid-April, Ethereum (ETH) prices have stayed under $3300. However, before the launch of the Hong Kong spot Ethereum ETFs, there was a robust recovery that pushed ETH up to a peak of $3357.

As a crypto investor, I’ve noticed that we hit a roadblock once more at the short-term resistance of $3300. However, if we manage to close a daily candlestick above this level, it could be a sign of stronger bullish momentum ahead. It would be even more encouraging if the bears fail to push us below the significant psychological support at $3000.

2024-04-29 19:04

Delay on Franklin Templeton Investments ETH ETF

Read More