With DTCC certification, Franklin Templeton’s Ethereum ETF is awaiting SEC approval.
The Depository Trust and Clearing Corporation website, a prominent venue for U.S. securities transactions, now lists the spot Ethereum ETF.
An important milestone in the ETF’s operational deployment has been reached with the listing on the DTCC’s “Create/Redeem” column, indicating that the fund is now accessible for formation and redemption.
The U.S. Securities and Exchange Commission’s (SEC) approval, which is still pending, is not implied by the listing.
An ETF that is listed on the DTCC website is qualified for trading and settlement through the DTCC’s systems after completing specific registration or compliance procedures.
But the ultimate clearance is dependent on how the SEC evaluates it in light of the many regulatory requirements.
In an attempt to introduce a spot Ether (ETH) ETF, Franklin Templeton submitted a Form S-1 to the SEC in February. If authorized, it would trade on the Chicago Board Options Exchange under the name “Franklin Ethereum ETF.”
But the SEC revealed in a recent update in April that it would be taking longer to make a decision on the application, and that the review period would now run until June 11.
Prominent players in the industry, such as ARK Invest, VanEck, Grayscale, and BlackRock, are also vying for approval to list in Ether ETFs.
But compared to spot Bitcoin ETFs, which were approved in January, the chances of these Ethereum-based ETFs being approved by the SEC seem to be different.
Eric Balchunas, a Bloomberg ETF analyst, estimated in March that there was a 35% chance that a spot Ether ETF would be approved in May. He drew attention to the SEC’s less aggressive stance in contrast to the Bitcoin ETF applications.
Balchunas also noted that the conclusion might be impacted by the opinions of SEC Chair Gary Gensler regarding Ether and his hesitation to classify it as a security.
