Franklin Templeton, one of the asset management giants, took a significant step into the cryptocurrency market with the launch of the “Franklin Ethereum TR Ethereum ETF”, known by the code EZET. This new Ethereum spot ETF has been listed on the Depository Trust and Clearing Corporation (DTCC), essential for processing securities transactions in the US. Inclusion in the DTCC indicates that the ETF is ready for creation and redemption processes, allowing investors to adjust their positions according to market demand, keeping the ETF's price in line with the current value of Ethereum.
At the time of publication, the ETH price it was quoted at US$3.249,09 with an increase of 3% in the last 24 hours.
Listing on the DTCC, however, does not imply automatic approval by the Securities and Exchange Commission (SEC), which operates under a set of strict regulatory criteria. Still, Franklin Templeton had already demonstrated its intentions by submitting an S-1 form for this ETF to the SEC, seeking its listing 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 shows Y. DTCC emphasized that this is a standard practice to prepare for the launch of new ETFs to the… pic.twitter.com/YurFry4i71
- Wu Blockchain (@WuBlockchain) April 27, 2024
Despite this, in a recent turn of events, the SEC delayed its decision until June 11 in order to conduct a deeper analysis of the request. This postponement is a reflection of the current cautious interactions between Ethereum ETF issuers and the SEC, which has been less promising compared to previous discussions that culminated in the approval of Bitcoin ETFs earlier in the year.
Expectations for approval of Ethereum ETFs are tempered, particularly given discouraging feedback from the SEC and recent discussions suggesting a possible rejection of applications. This scenario is directly influenced by the leadership of Gary Gensler at the SEC, who is known for his critical stance towards cryptocurrencies, raising concerns about market manipulation.
O cryptocurrency market responded with a mix of cautious optimism. While the price of Ether has shown an increase throughout the year, it is still eclipsed by Bitcoin's robust performance. The investment community remains on alert, closely watching regulatory interactions, especially following detailed discussions with Coinbase regarding converting its Ethereum Trust into an ETF.
