Franklin Templeton Lists Ethereum ETF on DTCC Website
Asset management firm Franklin Templeton has officially listed its Ethereum exchange-traded fund (ETF) under the ticker EZET on the Depository Trust and Clearing Corporation (DTCC) website. The “Franklin Templeton Ethereum TR Ethereum ETF” can be found in the create or redeem column on the DTCC website. It’s important to note that this product is still pending approval by the U.S. Securities and Exchange Commission (SEC).
Current Challenges Facing Ethereum ETF Approval
Last week, the SEC announced a delay in the decision-making process pertaining to Franklin Templeton’s proposed spot Ethereum ETF, pushing the deadline to June 11. This delay has cast uncertainty on the fate of this financial product. The proposed ETF aims to mirror the price of ether and is set to utilize Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.
According to Bloomberg Intelligence analyst James Seyffart, there is skepticism surrounding the approvals of the current Ether ETF applications, hinting that denials could be on the horizon. Tron CEO Justin Sun weighed in on the matter, expressing doubts about an Ethereum ETF approval in May and emphasizing the necessity of long-term education for regulators regarding cryptocurrencies.
The regulatory status of Ethereum remains in limbo, with the SEC not categorizing ETH as a security thus far. However, there have been reports of U.S.-based companies receiving subpoenas in an attempt to classify ETH as a security. While Ethereum is predominantly viewed as a decentralized cryptocurrency rather than a security, regulatory bodies like the SEC are actively monitoring the crypto space and may introduce new guidelines or rulings in response.
Recently, Ethereum developer firm Consensys, led by Joe Lubin, took legal action against the SEC on April 25, citing “overzealous regulation” surrounding the Ethereum blockchain. Lubin highlighted the importance of preserving access to ether and the Ethereum blockchain within the U.S. and emphasized their resistance to what they perceive as excessive regulatory measures. In a blog post, Consensys criticized the SEC’s regulatory strategy, citing disruptions caused to developers, market participants, institutions, and countries utilizing Ethereum as a critical platform for decentralized applications.
