Franklin Templeton lists Ethereum ETF on DTCC

Asset management firm Franklin Templeton has listed its spot Ether exchange-traded fund (ETF) — the Franklin Ethereum TR Ethereum ETF (EZET) — on the Depository Trust and Clearing Corporation (DTCC) website, a significant platform for securities transactions in the United States.

The DTCC website’s “Create/Redeem” column lists the ETF, indicating its availability for creation and redemption. The listing of the Franklin Templeton Ethereum spot ETF on the DTCC website does not mean Franklin's spot Ether ETF application to the United States Securities and Exchange Commission (SEC) will be approved.

The DTCC website often lists securities eligible for trading and settlement within its systems, including ETFs that have completed particular registration or compliance processes. However, the approval status of an ETF filing is determined by the SEC based on various regulatory criteria and considerations.

The 1.5 trillion dollar asset management firm submitted its Form S-1 to the SEC on Feb. 12 to apply for a spot Ether ETHUSD ETF. If approved, the ETF would be listed as “Franklin Ethereum ETF” on the Chicago Board Options Exchange.

The SEC postponed a potential decision on Franklin Templeton’s ETF application on April 23. The SEC said it extended the timeline to review the proposed rule change for the listing and trading of Franklin Ethereum Trust shares on the Cboe BZX Exchange. The SEC now has until June 11, granting an additional 45 days for evaluation.

Other industry giants like BlackRock, Grayscale, VanEck and ARK Invest have also entered the spot Ether ETF race. However, the likelihood of the SEC approving spot Ethereum ETFs differs from that of spot Bitcoin ETFs prior to their approval in January.

In March, Bloomberg ETF analyst Eric Balchunas estimated the chances of the SEC approving a spot Ether ETF in May at around 35%, citing the regulator’s less engaged stance than during the Bitcoin ETF application process. He also mentioned that SEC Chair Gary Gensler’s stance on Ether could impact the decision process, with Gensler refusing to clarify whether Ether is a security.