Franklin Templeton’s ETH ETF Listed on DTCC

Franklin Templeton — a leading asset manager — has accomplished the listing of its Ethereum (ETH) exchange-traded fund (ETF) named EZET on an important platform.

The ETF debuted on the Depository Trust and Clearing Corporation (DTCC) platform, a hub for securities transactions within the United States. Franklin Templeton’s EZET listing on the DTCC platform signifies its availability for creation and redemption, a vital mechanism ensuring the ETF’s market price closely mirrors its underlying asset value.

Does It Guarantee Approval?

However, it’s crucial to note that this listing on the DTCC does not equate to an automatic approval of its S-1 filing submitted to the United States Securities and Exchange Commission (SEC) for a spot Ether ETF approval. The DTCC website commonly features securities eligible for trading and settlement within its systems and often includes ETFs that have completed specific registration or compliance protocols.

Only the SEC can green-light an ETF filing, contingent upon rigorous regulatory scrutiny and adherence to prescribed criteria. Franklin Templeton, boasting assets under management totaling $1.5 trillion, lodged its S-1 filing with the SEC on February 12. If approved, the ETF would be named “Franklin Ethereum ETF” following its listing on the Chicago Board Options Exchange.

SEC Defers Approval Decision

Meanwhile, the date for the approval remains uncertain. The SEC recently deferred a decision on Franklin Templeton’s spot ETH ETF application. Thus, it extended the evaluation period by 45 days until June 11. Franklin Templeton joins industry behemoths such as Grayscale, BlackRock, ARK Invest, and VanEck in vying for a slice of the spot ETH ETF market.

Nevertheless, Eric Balchunas, Bloomberg ETF analyst, opines that there’s a 35% chance of the SEC approving a spot ETH ETF in May. He contrasts the regulator’s approach with the spot BTC ETF approval process. Given his reluctance to clarify ETH’s classification as a security, SEC Chair Gary Gensler’s stance on ETH could significantly influence the regulator’s decision to approve a spot ETH ETF.