Just In: SEC Extends Review Period for Franklin Templeton Ethereum ETF

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The SEC’s decision on whether to approve Franklin Templeton’s Ethereum ETF has been pushed back. The new date for a decision is now June 11, 2024. This is just one of several cryptocurrency ETF applications the SEC has delayed in recent months.

Franklin Templeton Ethereum ETF Delay

In February 2024, Franklin Templeton submitted the first S-1 filing for the proposed Ethereum ETF named Franklin Ethereum. This fund aims to mirror the price of Ethereum. Coinbase Custody Trust Company and Bank of New York Mellon were chosen as the custodians to safeguard the assets.

The SEC delayed making a decision on the proposed rule changes, stating they need more time to thoroughly review and address any potential issues that may arise. This additional time allows the commission to make an informed decision on the proposed changes.

The SEC’s delay of Franklin Templeton’s Ethereum ETF application is not an isolated incident. VanEck and BlackRock, among other finance giants, have also had their Ethereum ETF proposals postponed by the SEC. This cautious approach from the regulatory body reflects the complexity involved in regulating cryptocurrency-based ETFs, which are relatively new financial instruments.

Several ETF proposition suggestions have drawn public feedback, focusing primarily on Ethereum’s proof-of-stake system, potential for deceit, and chances for manipulation.

Market Impact and Prospects

At this point, setbacks are being experienced, as the prospect of Ethereum ETF acceptance seems to be fading away. Analysts like JPMorgan now believe that the approval of these ETFs is less likely in the near future.

Previously, some experts predicted a 70% chance of approval for Bitcoin ETFs in May. However, this probability has since dropped to around 30%. Yet, the introduction of spot Bitcoin ETFs had a favorable effect on the market. Consequently, the approval of Ethereum ETFs might similarly bring about a positive impact on the cryptocurrency market.

Despite the previous decision, Ethereum’s price has continued to rise. Currently, Ethereum is being traded at $3,234, which represents a 1.52% increase from its lowest point today.

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2024-04-24 00:14