SEC delays Franklin Templeton spot Ethereum ETF

The U.S. SEC postponed the application to open an Ethereum ETF from Franklin Templeton.

Based on information from the regulatory body’s website, the Commission intends to allow more time for processing the suggested rule modification to ensure thorough review and consideration.

The SEC must decide on Franklin Templeton’s application by June 11.

The Commission has the option to approve or reject the suggested rule change. If needed, they may initiate further investigation before making their final decision on rejection.

SEC filing

In February, Franklin Templeton applied for permission to launch an Ethereum Exchange-Traded Fund (ETF). Should the application be granted, Coinbase Custody Trust Company would serve as the custodian for the second largest cryptocurrency in terms of market capitalization, which is Ethereum.

If granted approval, the product will become available for trading on the Chicago Board Options Exchange’s BZX platform. Its operation closely resembles that of cash-settled Bitcoin ETFs, as no actual shares are created or redeemed using anything other than cold hard cash.

After the Bitcoin ETF was introduced, major investment firms, including VanEck and ARK/21Shares, have applied to the SEC for permission to create Ethereum spot ETFs. The SEC has set a final decision date for these applications on May 23rd.

The Hong Kong Securities and Futures Commission (SFC) has given its blessing for the debut of Ethereum-backed spot ETFs. Yet, Bosera Asset Management, granted approval, chose not to reveal the specific ticker symbols for their product.

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2024-04-23 20:01