Franklin Templeton Launches Ethereum ETF on DTCC

Franklin Templeton, an asset management firm, has launched its own Ethereum exchange-traded fund (ETF) called the “Franklin Ethereum TR Ethereum ETF” or EZET. This ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website, which is a major platform for securities transactions in the US. The listing on the DTCC website means that investors can create and redeem shares of the ETF, which helps maintain its market price. It’s important to note that this listing does not guarantee approval from the US Securities and Exchange Commission (SEC) for a spot Ether ETF filing that Franklin Templeton submitted.

The DTCC website often includes securities that are eligible for trading and settlement within its systems, even if they haven’t been officially approved by the SEC. The approval of an ETF filing is determined by the SEC based on regulatory criteria and considerations. Franklin Templeton submitted the S-1 filing for a spot Ether ETF on February 12, aiming to list it as the “Franklin Ethereum ETF” on the Chicago Board Options Exchange if approved. The SEC delayed its decision on this application and now has until June 11 to evaluate it, granting an additional 45 days.

By being listed on the DTCC website, Franklin Templeton’s Ethereum spot ETF joins other industry giants like BlackRock, Grayscale, VanEck, and ARK Invest, who have also entered the Ethereum ETF race. It’s worth noting that the outlook for Ethereum-based funds differs from that of Bitcoin-based funds. Bloomberg ETF analyst Eric Balchunas previously estimated in March that there was around a 35% chance of the SEC approving a spot Ether ETF in May, highlighting the regulator’s less engaged stance compared to the Bitcoin ETF approval process. SEC Chair Gary Gensler’s position on Ether may influence the decision process, as he has not provided clear guidance on whether Ether is considered a security.