Ethereum ETF listed by Franklink Templeton, but SEC approval seems far away – BLOX

Franklin Templeton, a major player in asset management, has launched a new product: the Franklin Ethereum TR Ethereum ETF, abbreviated as EZET.

This ETF, which is directly tied to the value of Ethereum, is registered with the Depository Trust and Clearing Corporation (DTCC). The DTCC is an important American platform for handling securities trading.

Although the ETF is registered with the DTCC, this does not mean that the shares can actually be traded. The SEC also has to take a piss on it.

SEC has yet to give approval

Registration with the DTCC does not therefore mean that the American stock exchange regulator, the Securities and Exchange Commission (SEC), has given permission. The DTCC registers many securities, but approval from the SEC is a stricter procedure and is necessary to actually offer trading.

Franklin Templeton already filed a filing with the SEC in February. If the SEC approves, the ETF will trade on the Chicago stock exchange under the name “Franklin Ethereum ETF”.

However, the SEC postponed the decision until June 11. The supervisor wants more time to study the application. According to experts, there is little chance that the SEC will approve this and other Ethereum ETFs. The SEC still has to decide on several applications, including from VanEck and Ark.

Why would the SEC refuse?

The SEC may find that there is too little supervision of the Ethereum market. The regulator may want more information before trading in ETFs directly linked to Ethereum.

Despite the skepticism, some ETF providers remain optimistic. They would be willing to consult with the SEC to address any concerns. The market is now anxiously awaiting what the SEC will decide.

However, the SEC’s feedback is not promising, indicating a possible denial of these applications. What a contrast to the more open discussions that led to the approval of spot Bitcoin ETFs in January.