Franklin Templeton has listed its Ethereum exchange-traded fund (ETF) on the Depository Trust and Clearing Corporation (DTCC) website, using the ticker symbol EZET. The ETF, named the “Franklin Templeton Ethereum TR Ethereum ETF,” is currently in the create or redeem stage and is awaiting approval from the U.S. Securities and Exchange Commission (SEC).
Franklin Templeton filed its application for the spot Ethereum ETF on February 12, joining a long list of asset managers such as BlackRock, Fidelity, Grayscale, VanEck, Invesco, Galaxy, Ark Invest, and 21Shares, who have also submitted applications for a spot Ethereum ETF. However, the SEC recently announced a delay in its decision on Franklin Templeton’s proposed ETF, extending the deadline to June 11. This uncertainty leaves the future of the financial product unknown for now.
The proposed ETF aims to track the price of ether and plans to utilize Coinbase Custody Trust Company and the Bank of New York Mellon as custodians. However, Bloomberg Intelligence analyst James Seyffart has expressed skepticism, suggesting that the current round of Ether ETF applications may ultimately be denied.
Tron CEO and founder Justin Sun believes it is unlikely that an Ethereum ETF will be approved in May, as he believes there needs to be more education on the cryptocurrency for regulators. The status of Ethereum as a security is currently unclear, as the SEC has not classified it as such. However, there have been reports of U.S.-based companies receiving subpoenas to label ETH as a security. Regulatory agencies like the SEC are closely monitoring the cryptocurrency space and may provide further guidance or make sudden changes or new rulings in the future.
In related news, Consensys, an Ethereum developer firm led by Joe Lubin, has filed a lawsuit against the SEC on April 25, accusing the agency of “overzealous regulation” around the Ethereum blockchain. Lubin stated that the lawsuit aims to preserve access to ether and the Ethereum blockchain in the U.S. Consensys argues that the SEC’s approach is causing chaos for developers, market participants, institutions, and nations that rely on Ethereum for critical systems.
It’s important to stay updated on regulatory developments in the cryptocurrency space as they continue to evolve.
