The U.S. Securities and Exchange Commission (SEC) Postponed the Decision Regarding Approval of Franklin Templeton's Spot Ethereum Exchange Traded Fund (ETF). A new extension of the SEC's decision is set for June 11, 2024. This action is one of the delays the SEC has implemented on numerous crypto ETF proposals over the past few months.
Franklin Templeton Ethereum ETF Delay
Franklin Templeton filed Franklin's first S-1 registration statement. Ethereum ETF This ETF is designed to track the cost of Ethereum, and Coinbase Custody Trust Company and Bank of New York Mellon were appointed as custodians.
The SEC deferred its decision because the commission needs more time to consider the proposed rule changes and the issues that may arise from them. The SEC said the extension would allow it to “take action on the proposed rule changes to allow sufficient time to consider the proposed rule changes and the issues raised therein.”
decisions regarding Franklin Templeton ETF It is not isolated, as there are other Ethereum ETF filings that have been delayed by the SEC, including financial giants VanEck and BlackRock. This trend embodies the SEC's cautious attitude towards crypto-based ETFs. ETFs are still a very new financial product and are very complex when it comes to regulation.
Many of these ETF proposals have been opened for public comment, with major concerns centering on Ethereum's proof-of-stake mechanism, potential for fraud, and opportunities for manipulation.
Market impact and outlook
However, such delays are being observed at a time when expectations for Ethereum ETF position allowances are receding.including analysts JP Morganwe find that estimates of the likelihood of such ETFs being approved in the near term are decreasing.
For example, some market experts previously estimated the probability of approval in May at 70%, but this has been adjusted to around 30%. However, despite these challenges, the effect of the Spot Bitcoin ETF is positive in the market, suggesting that the approval of the Ethereum ETF could have a positive impact on the market. cryptocurrency market.
However, despite this decision, the price of Ethereum (ETH) remains bullish. At the time of writing, ETH price was trading at $3,234, up 1.52% from the intraday low.
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