The SEC’s acceptance of the S-1 application for a spot Ether ETF is not assured by the Franklin Templeton Ethereum spot ETF’s DTCC listing.
The Ethereum exchange-traded fund (ETF) known as the “Franklin Ethereum TR Ethereum ETF” and designated as EZET has been introduced by asset management company Franklin Templeton. The website of the Depository Trust and Clearing Corporation, a prominent venue for securities transactions in the US, now lists the Ethereum spot ETF.
The ETF is listed and its creation and redemption options are indicated in the Create/Redeem column of the DTCC website. This is an important feature of exchange-traded funds (ETFs) since it enables the supply of shares to be adjusted in response to demand, keeping the market price of the ETF near its net asset value.
The approval of the S-1 filing for a spot Ether ETF submitted to the US Securities and Exchange Commission (SEC) is not always indicated by the listing of the Franklin Templeton Ethereum spot ETF on the DTCC website.
ETFs that have successfully completed specific registration or compliance procedures are among the securities that are frequently listed on the DTCC website as being authorised for trading and settlement within its systems. However, the SEC uses a number of regulatory factors and considerations to decide whether to approve an ETF filing.
The US Securities Exchange Commission received the S-1 file from the 1.5 trillion dollar asset management company on February 12 in response to its application for a spot Ether (ETH) ETF. If authorised, the Chicago Board Options Exchange would offer it as the “Franklin Ethereum ETF.”
The SEC decided on April 23 to postpone making a decision regarding Franklin Templeton’s Ethereum spot ETF application. According to the SEC, there is now more time to examine the proposed rule change that would allow Franklin Ethereum Trust shares to be listed and traded on the Cboe BZX Exchange. With an extra 45 days for review, the commission now has until June 11th.
Following in the footsteps of other industry titans like BlackRock, Grayscale, VanEck, and ARK Invest, Franklin Templeton has entered the Ethereum ETF race with its Ethereum spot ETF, which is now listed on the Depository Trust and Clearing Corporation website. On the other hand, compared to their Bitcoin equivalents, the outlook for Ethereum-based funds is different.
A spot Ether ETF approval by the SEC is expected in May, according to a March estimate by Bloomberg ETF analyst Eric Balchunas, who cited the regulator’s less involved approach in comparison to the Bitcoin ETF approval process. The decision-making process may be impacted by SEC Chair Gary Gensler’s position on Ether, he added, as Gensler has yet to say whether or not Ether is a security.