DTCC Listing: A Milestone for EZET
Asset management giant Franklin Templeton has taken a significant step by listing its Ethereum exchange-traded fund (ETF), the Franklin Ethereum TR Ethereum ETF, with the ticker code EZET, on the Depository Trust and Clearing Corporation (DTCC) website. This platform is crucial for securities transactions in the U.S., and listing on DTCC’s “Create/Redeem” column is essential for the ETF’s operational rollout.
SEC Approval: The Next Hurdle
While the DTCC listing is a pivotal move, it does not equate to an endorsement by the U.S. Securities and Exchange Commission (SEC). The ETF must still secure SEC approval to be fully operational. This pending approval is a key hurdle that Franklin Templeton must clear.
Regulatory Path and Industry Competition
Franklin Templeton formally filed a Form S-1 with the SEC in February, aiming to establish a spot Ether (ETH) ETF to be traded as “Franklin Ethereum ETF” on the Chicago Board Options Exchange. Following a delay announced in April, the SEC has extended the review period until June 11. This delay highlights the competitive and regulatory complexities of launching cryptocurrency ETFs, with notable industry players like BlackRock and Grayscale also vying for similar approvals.
Market and Regulatory Insights
Despite the successful launch of spot Bitcoin ETFs earlier this year, the path for Ethereum-based ETFs like EZET seems more fraught. Bloomberg ETF analyst Eric Balchunas rated the likelihood of a spot Ether ETF approval at about 35% for May, pointing out the SEC’s cautious approach to Ether compared to Bitcoin. SEC Chair Gary Gensler’s ambiguous stance on whether Ether constitutes a security adds another layer of uncertainty affecting the approval process.
In conclusion, Franklin Templeton’s initiative to launch an Ethereum ETF marks a significant development in the financial markets. However, the final approval from the SEC remains a crucial step that will determine the success and influence of this financial product on the market.
