Road To Approval? The First Spot Ethereum ETF Lands On The DTCC Website

Franklin Templeton’s Ethereum ETF Listing on DTCC: A Potential Signal for SEC Approval?


The appearance of Franklin Templeton’s Ethereum Spot ETF ticker on the DTCC list may indicate a potential sign that the SEC is considering approval for Ethereum-based exchange-traded funds (ETFs) in the United States.

Franklin Templeton’s Spot Ethereum ETF Gets Listed By DTCC

On Fridaay, the 26th of April, 2023, the anticipated Ethereum Spot Exchange-Traded Fund (ETF) from American investment firm Franklin Templeton was launched on DTCC’s site, identifiable by the ticker symbol EZET.

The addition of Franklin Templeton to DTCC’s platform occurs concurrently with the SEC’s ongoing discussions about authorizing Ethereum Spot ETFs. In early January, following the approval and debut of Spot Bitcoin ETFs, several analysts predicted the emergence of more cryptocurrency ETFs. The focus has been on Ethereum as a strong possibility to follow Bitcoin in obtaining an ETF.

Despite the significant applications from well-known financial institutions like BlackRock, Grayscale, VanEck, Fidelity, and more for an Ethereum Spot Exchange-Traded Fund (ETF) with the Securities and Exchange Commission (SEC) of the United States, the approval process has been consistently postponed.

In a filing made public on April 23, Tuesday, the regulatory body announced an extended decision-making timeline for determining its course of action concerning Franklin Templeton and Grayscale’s proposed Ethereum Spot ETFs. The new deadline for a decision has been set as June 11.

Other crypto and financial experts, including analysts from Standard Chartered and VanEck CEO, Jan Van Eck, had voiced doubts beforehand that the US Securities and Exchange Commission (SEC) would approve Ethereum Spot ETFs in the near future.

Road To Approval? The First Spot Ethereum ETF Lands On The DTCC Website

Is The New Listing A Sign Of An Imminent Approval? 

The inclusion of Franklin Templeton’s proposed Ethereum Spot ETF on the DTCC list marks the beginning of the trading process, but it doesn’t ensure SEC approval. Ultimately, the Securities and Exchange Commission has the final say in whether to approve or deny such investment products.

As a crypto investor, I’ve been closely monitoring the developments regarding Spot Bitcoin Exchange-Traded Funds (ETFs). The Depository Trust & Clearing Corporation (DTCC) had previously listed BlackRock’s proposed Spot Bitcoin ETF on its platform, sparking excitement and fueling speculations about potential SEC approval. However, I soon learned that this listing did not equate to the SEC’s endorsement of such applications. The DTCC later clarified that the listing was merely a logistical step for potential future trading, should the SEC approve the Spot Bitcoin ETF applications.

Amidst growing excitement over the potential approval of an Ethereum Spot Exchange-Traded Fund (ETF) in the US, the Securities and Exchange Commission (SEC) has kept silent on its stance. According to Eric Balchunas, a senior ETF analyst at Bloomberg, the chances of Ethereum ETF approval stood at just 25% as of early March, suggesting a cautiously pessimistic perspective.

As a researcher studying the cryptocurrency market, I can tell you that there’s a great deal of anticipation and excitement surrounding the Ethereum Spot ETF applications from Franklin Templeton and other financial firms. The community is closely watching the Securities and Exchange Commission (SEC) for their final decision on these applications. Approval of an ETF would be seen as a major milestone in the digital asset sector, paving the way for increased institutional investment and mainstream adoption.

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2024-04-28 04:11