As an experienced financial analyst, I see Franklin Templeton’s entry into the Ethereum ETF market with great interest. The listing of their Ethereum spot ETF on the Depository Trust and Clearing Corporation (DTCC) website is an important step towards potential approval from the Securities and Exchange Commission (SEC). However, it does not guarantee approval, as the SEC’s decision is based on various regulatory criteria and considerations.
Franklin Templeton, the asset management company, has introduced its new Ethereum exchange-traded fund (ETF) named “Franklin Ethereum TR Ethereum ETF” and represented by the ticker symbol EZET. This Ethereum spot ETF is now accessible on the Depository Trust and Clearing Corporation (DTCC) website, a major hub for securities trading in the US.
The Create/Redeem section on the DTCC website signifies that the specified ETF is eligible for creation or redemption. This feature plays a vital role in ETFs as it enables adjusting the number of shares based on investor demand, thereby maintaining the ETF’s market price near its net asset value.
Discovering an Ethereum spot ETF by Franklin Templeton on the DTCC site doesn’t automatically mean the SEC has given its approval for the S-1 filing of an Ethereum spot ETF.
The DTCC website regularly posts securities that can be traded and settled through its platforms, including certain ETFs which have gone through specific regulatory procedures. Nevertheless, it’s important to note that the SEC makes the final decision regarding the approval status of an ETF application based on numerous regulatory factors.
As an analyst, I can tell you that on February 12, our asset management firm, worth approximately 1.5 trillion dollars, submitted an S-1 filing to the US Securities Exchange Commission with the intention of launching a spot Ethereum Exchange-Traded Fund (ETF). If given the green light, this ETF would go by the name “Franklin Ethereum ETF” and be listed on the Chicago Board Options Exchange.
As a crypto investor, I’ve been keeping a close eye on the developments surrounding Franklin Templeton’s Ethereum spot ETF application. Recently, the SEC announced that they would be delaying their decision on this matter. They explained that they were extending the review period for the proposed rule change, which would allow the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The new deadline for a decision is now June 11, providing an extra 45 days for thorough evaluation.
The listing of Franklin Templeton’s Ethereum spot ETF on the DTCC site positions Franklin Templeton alongside industry leaders such as BlackRock, Grayscale, VanEck, and ARK Invest, all of whom have likewise expressed interest in Ethereum ETFs. Notably, the landscape for Ethereum investment vehicles diverges from that of Bitcoin ETFs.
Previously, Bloomberg ETF analyst Eric Balchunas predicted a roughly 35% likelihood of the SEC endorsing a spot Ethereum ETF by May based on the regulator’s more lenient approach relative to the Bitcoin ETF approval saga. However, Balchunas added that the SEC Chair Gary Gensler’s stance on Ethereum could sway the decision-making, as Gensler has yet to provide clarity on whether Ethereum should be classified as a security.
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2024-04-27 13:34