Asset manager Franklin Templeton has launched an Ethereum exchange-traded fund (ETF) called the “Franklin Ethereum TR Ethereum ETF” using the ticker code EZET.
The spot Ethereum ETF was listed on the Depository Trust and Clearing Corporation website, an important platform for U.S. securities trading.
A listing in the “Creation/Redemption” column of the DTCC indicates that the ETF can now be created and redeemed, representing an important step in the operation of the ETF.
This listing does not imply approval by the U.S. Securities and Exchange Commission (SEC), which is still pending.
Listing on the DTCC website means that an ETF has completed certain registration or compliance procedures and is eligible for trading and settlement within the DTCC system.
However, final approval will depend on the SEC’s evaluation of various regulatory standards.
Franklin Templeton filed Form S-1 with the SEC in February to launch a spot Ether (ETH) ETF. If approved, it will trade on the Chicago Board Options Exchange as the “Franklin Ethereum ETF.”
However, in its latest update this April, the SEC announced it was postponing its decision on the application and extending the review period for another 45 days, until June 11.
Industry majors including BlackRock, Grayscale, VanEck, and ARK Invest are also in the race to secure their own approval for an Ether ETF.
However, the prospects for these Ethereum-based ETFs to receive approval from the SEC appear to be different from the spot Bitcoin ETF, which was approved in January.
In March, Bloomberg ETF analyst Eric Balchunas put the odds of a spot Ether ETF being approved in May at around 35%. He pointed to the SEC’s less proactive approach compared to Bitcoin ETF applications.
Balchunas also noted that SEC Chairman Gary Gensler’s views on Ether and his reluctance to explicitly define Ether as a security could impact the final outcome.