Franklin Templeton’s relisting on the DTCC platform comes amid the SEC’s ongoing deliberations regarding the approval of Ethereum spot ETFs.
Franklin Templeton’s Ethereum Spot ETF ticker has appeared on the Depository Trust and Clearing Corporation (DTCC) listing, indicating a possible sign that the United States Securities and Exchange Commission (SEC) could approve Ethereum ETFs.
Franklin Templeton’s Ethereum Spot ETF Listed by DTCC
On Friday, April 26, American multinational investment firm Franklin Templeton’s proposed Ethereum Spot ETF made its debut on the official DTCC website, under the symbol EZET.
The $1.5 trillion asset management firm had filed the S-1 filing with the U.S. Securities and Exchange Commission on Feb. 12 to apply for a spot Ethereum (ETH) ETF. It would be listed as “Franklin Ethereum ETF” on the Chicago Options Exchange if approved.
In early January, following the approval and launch of Bitcoin spot ETFs, many analysts anticipated the emergence of additional cryptocurrency ETFs, with speculation centering that Ethereum would be next to receive an ETF after Bitcoin.
However, despite prominent financial services companies such as BlackRock, Grayscale, VanEck, Fidelity and others filing applications for an Ethereum Spot ETF, US SEC approval has been consistently delayed.
The regulatory agency revealed in a recent filing on Tuesday, April 23 that it would designate a longer period to decide its appropriate mode of action regarding the Spot Ethereum ETF proposed by Franklin Templeton and Grayscale. The commission had scheduled June 11 as the new deadline to approve or reject the Ethereum Spot ETF proposals.
This move appears to be anticipated by other cryptocurrency and finance experts in the industry, as Standard Chartered analysts and VanEck CEO Jan Van Eck had previously expressed skepticism about the likelihood of the US SEC authorize Ethereum spot ETFs soon.
Is the New Listing a Sign of Imminent Approval?
The recent addition of Franklin Templeton’s proposed Ethereum Spot ETF to the DTCC listing is considered an initial step in the trading process and does not guarantee approval from the SEC, which has the exclusive authority to greenlight or reject such investment products.
Prior to the approval of the Spot Bitcoin ETFs, the DTCC had listed BlackRock’s previously proposed Spot Bitcoin ETF on its platform, fueling speculation and raising hopes of possible SEC approval. However, the clearing and settlement firm later removed BlackRock’s Bitcoin ETF from its platform, clarifying that the listing did not imply SEC endorsement of Bitcoin spot ETF applications.
Amid anticipation of the approval of an Ethereum spot ETF, the US SEC has remained ambiguous about its position. Bloomberg Senior ETF Analyst Eric Balchunas also revealed in early March that the odds of approving an Ethereum ETF were just 25%, reflecting a rather pessimistic outlook. He also mentioned that SEC Chairman Gary Gensler’s stance on Ether could impact the decision process, as Gensler has refused to clarify whether or not Ether is a security.
Other analysts are more optimistic. JPMorgan analysts expect the SEC to eventually approve an Ethereum spot ETF, although they suggest this development could be extended and occur as a result of an eventual legal challenge, similar to the Grayscale lawsuit that forced the SEC to re-examine the Bitcoin Spot ETF.
Overall, the broader crypto market is still closely monitoring developments surrounding the Ethereum Spot ETF applications from Franklin Templeton and other financial firms along with the SEC’s final decision, recognizing a potential approval as an important step forward in the digital asset sector.
By Audy Castaneda
