Franklin Templeton recently introduced its Ethereum exchange-traded fund (ETF), named “Franklin Ethereum TR Ethereum ETF,” with ticker code EZET. The DTCC website now lists this ETF, allowing for creation and redemption. However, SEC approval is still pending.
Franklin Templeton, a well-known asset management company, has introduced its new Ethereum exchange-traded fund (ETF) named “Franklin Templeton Ethereum Trust” or “EZET for short,” which is now accessible on the stock market.
The Depository Trust and Clearing Corporation (DTCC) website now features the location of the Ethereum ETF, marking a notable milestone in US securities trading.
As a researcher, I’ve noticed an exciting development regarding the Exchange-Traded Fund (ETF) in question. The recent update on DTCC’s “Create/Redeem” list implies that this ETF is now eligible for both creation and redemption. This milestone signifies a substantial advancement in the operational implementation process of the fund.
As a securities analysis expert, I want to clarify that the SEC’s approval, which is a crucial step before any security can be offered or sold in the United States, has not yet been granted for this listing. The current status indicates that the application is still under review.
The DTCC website indicates that an ETF (Exchange-Traded Fund) has gone through necessary registration and compliance procedures. Consequently, this qualifies the ETF to be traded and settled via the DTCC’s infrastructure.
The final approval, however, hinges on the SEC’s assessment against various regulatory standards.
In February, Franklin Templeton submitted a Form S-1 to the Securities and Exchange Commission (SEC) with the intention of introducing a new exchange-traded fund (ETF) that tracks the price of Ether (ETH) and is listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange, if given the green light by regulatory authorities.
In April, the SEC revealed that they would need more time to make a decision on the application and pushed back the deadline for their decision to June 11, extending the review process by an extra 45 days.
Leading companies such as BlackRock, Grayscale, VanEck, and ARK Invest are among the main competitors vying for approval to launch their own exchange-traded funds (ETFs) based on Ether.
As a crypto investor, I’ve noticed that the path towards SEC approval for Ethereum-based exchange-traded funds (ETFs) seems distinct from that of spot Bitcoin ETFs, which were granted the go-ahead in January.
In March, Eric Balchunas, an ETF analyst at Bloomberg, estimated that there was approximately a 35% chance of the Securities and Exchange Commission (SEC) approving a spot Ethereum exchange-traded fund (ETF) in May. He noted that the SEC had been more hesitant in dealing with Ethereum ETF applications compared to those for Bitcoin.
Balchunas pointed out that SEC Chair Gary Gensler’s perspective on Ether and his unwillingness to definitively label it as a security might shape the eventual decision.
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2024-04-27 22:30