While there are rumors that the SEC will most likely reject the Ethereum ETF on the May 23rd deadline, no one knows that Franklin Templeton recently listed his Ethereum ETF on the Deposit Trust Clearing Corporation (DTCC). I was shocked.
The Franklin Ethereum TR Ethereum ETF, with the code EZET, was added to the DTCC following news that the U.S. Securities and Exchange Commission (SEC) may refuse to approve Ethereum-based ETFs.
Franklin Templeton Ethereum ETF
Franklin Templeton launched an Ethereum ETF, currently listed on DTCC. The “Creation/Redemption” section on the DTCC website indicates that ETFs are subject to creation and redemption, two important aspects for maintaining market prices commensurate with net asset value. .
However, this listing does not guarantee SEC approval for the Spot Ethereum ETF, which will be determined next month.
Franklin Templeton's Ethereum ETF listing on DTCC will align the company with other industry leaders competing in the Ethereum ETF market, including BlackRock, Grayscale, VanEck, and ARK Invest.
The company filed an S-1 application with the SEC in February seeking approval for a Spot Ethereum ETF that, if approved, would be listed on the Chicago Board Options Exchange.
Also check out: Will SEC's Gary Gensler declare Ethereum a security? Expert discussion
Challenges in the Ethereum ETF landscape
The SEC's Gary Gensler previously suggested in an interview with CNBC that just because the SEC approved a Bitcoin ETF, there is no guarantee that regulators will approve an ETH ETF in the future.
The agency's hesitation may also be due to SEC Chairman Gary Gensler's reluctance to clarify whether Ether is a security.
The listing of Franklin Templeton's Ethereum Spot ETF on the DTCC does not indicate that it will ultimately be approved by the SEC.
Some analysts have suggested that a rejection could lead to litigation, similar to the legal challenge that prompted the SEC to reconsider Grayscale's Spot Bitcoin ETF application.
Uncertainty surrounding Ethereum ETFs
The listing on the DTCC website comes amid widespread speculation that the SEC may not approve the Ethereum ETF within the next month.
The SEC's demoralizing meeting with major players in the crypto industry indicates that the Ethereum-based ETF's listing application is likely to be rejected, according to people familiar with the matter.
One person familiar with the matter said recent meetings between issuers and the SEC were one-sided, with limited involvement from the SEC. This is in contrast to the detailed discussions leading up to the approval of the Spot Bitcoin ETF in January 2024.
The SEC's anticipated denial could slow the development of Ethereum-based ETFs and dampen industry enthusiasm. Bloomberg ETF analyst Eric Balchunas estimates an Ethereum spot ETF has only a 25% chance of approval, highlighting the company's lack of commitment compared to its approach for Bitcoin ETFs. I made it.
Also read: Will Bitcoin (BTC) take control? BTC price risks dropping 20% soon
