Franklin Templeton’s plan to launch an Ethereum ETF has been added to the DTCC list, raising expectations for improved investor accessibility.
There have been rumors about the SEC rejecting spot Ethereum ETFs in May, but a recent development has added a twist. Franklin Templeton’s proposed spot Ethereum ETF, which is one of several applications from major players, has been listed on the Depository Trust and Clearing Corporation’s (DTCC) new securities list under the ticker EZET.
Franklin Templeton Lists Ethereum ETF
Franklin Templeton, the $1.5 Trillion asset management firm, has listed its Ethereum ETF on the DTCC website. The website shows that the ETF is available for creation and redemption, but this does not imply approval of the S-1 filing with the US Securities and Exchange. On February 12th, Franklin Templeton applied for its Spot ETH ETF.
The DTCC listing adds intrigue, suggesting that Franklin Templeton is confident about their application. However, experts have conflicting outlooks, creating a wait-and-see situation for investors wondering if a spot Ethereum ETF will become a reality.
Why The Listing Is Important
Listing on the DTCC is a crucial step that allows for supply adjustment of ETF shares to help keep up with their demand in the market, keeping an ETF’s market price closer to its net asset value (NAV).
While the DTCC listing is a step forward, it does not guarantee approval from the SEC. The regulatory body’s decision on the Franklin Templeton fund, along with others, is still pending.
The website has previously listed securities that are eligible for trading and settlement once ETFs complete registration and compliance procedures. The SEC postponed its decision on Franklin Templeton’s Ethereum ETF application on April 23, and the final deadline is now June 11, which gives the regulator an additional 45 days to make its decision on the Spot Ethereum ETF application.
Eric Balchunas Of Bloomberg Pointed Out SEC
Bloomberg ETF analyst Eric Balchunas assessed the likelihood of a spot Ether ETF being approved in May at about 35%. He pointed out the SEC‘s less proactive approach compared to the Bitcoin ETF applications. Balchunas also mentioned that the SEC Chair Gary Gensler’s views on Ether and his reluctance to define it explicitly as a security could influence the final outcome.
JPMorgan analysts believe that the SEC’s lack of communication regarding the approval of a spot bitcoin ETF could potentially be resolved through legal challenges similar to Grayscale’s lawsuit.
Conclusion
Franklin Templeton’s proposed spot Ethereum ETF, has been listed on the Depository Trust and Clearing Corporation’s new securities list under the ticker EZET. The DTCC listing adds intrigue, suggesting that Franklin Templeton is confident about their application. However, experts have conflicting outlooks, creating a wait-and-see situation for investors wondering if a spot Ethereum ETF will become a reality.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
