Franklin Templeton Lists Ethereum ETF on DTCC

Franklin Templeton has introduced its spot Ether exchange-traded fund (ETF) — the Franklin Ethereum TR Ethereum ETF (EZET) — for listing on the Depository Trust and Clearing Corporation (DTCC) website, a key venue for securities transactions in the United States.

The ETF appears in the DTCC website's "Create/Redeem" section, which signifies its readiness for creation and redemption processes.

However, the presence of the Franklin Templeton Ethereum spot ETF on the DTCC does not ensure that Franklin's spot Ether ETF application with the United States Securities and Exchange Commission (SEC) will receive approval.

Securities that are eligible for trade and settlement, including ETFs that have met certain registration or compliance requirements, are often listed on the DTCC website.

Nonetheless, the SEC is the ultimate authority that decides on the approval of ETF filings, based on various regulatory standards and factors.

The asset management giant, which controls assets worth 1.5 trillion dollars, filed its Form S-1 with the SEC on February 12 to seek approval for a spot Ether (ETH) ETF.

Should it gain approval, the ETF would be traded as the "Franklin Ethereum ETF" on the Chicago Board Options Exchange.

The SEC delayed its decision on the ETF application from Franklin Templeton on April 23.

It announced an extension of the review period for the proposed rule change related to the listing and trading of shares of the Franklin Ethereum Trust on the Cboe BZX Exchange, setting a new deadline of June 11 and extending the review period by an additional 45 days.

Major players in the industry like BlackRock, Grayscale, VanEck, and ARK Invest are also vying to launch their own spot Ether ETFs.

The chance of SEC approval for spot Ethereum ETFs varies compared to earlier approvals for spot Bitcoin ETFs in January.

In March, Bloomberg ETF analyst Eric Balchunas assessed the probability of the SEC approving a spot Ether ETF in May at about 35%, noting the regulator’s less active involvement compared to the Bitcoin ETF application period.

He also highlighted that SEC Chair Gary Gensler's unclear position on whether Ether is considered a security could influence the decision-making process.

Sources:

https://cointelegraph.com/news/franklin-templeton-launches-ethereum-etf-listed-on-dtcc

https://www.dtcc.com/products/cs/exchange_traded_funds_plain_new.php