Asset management firm Franklin Templeton has filed for an Ethereum exchange-traded fund (ETF) under the ticker EZET on the Depository Trust and Clearing Corporation (DTCC) website. However, the product has not yet been approved by the U.S Securities and Exchange Commission (SEC). The firm applied for the spot Ethereum ETF in February and joins a long list of asset managers who have submitted similar applications. The proposed ETF aims to track the price of ether and would utilize the services of Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.
The SEC recently announced a delay in its decision concerning Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11. This adds uncertainty regarding the future of this financial product. Additionally, the SEC has delayed a decision on BlackRock’s spot Ethereum ETF, with a deadline set for May 23. Bloomberg Intelligence analyst James Seyffart has expressed doubts about the approval of Ethereum ETF applications, suggesting they may be rejected. Despite efforts by various companies to achieve approval for spot Ethereum ETFs, the regulatory landscape remains uncertain.
The status of Ethereum is currently not classified as a security by the SEC, with the cryptocurrency being viewed as decentralized. However, reports have indicated that some U.S.-based companies have received subpoenas attempting to label ETH as a security. Regulatory authorities like the SEC continue to monitor the cryptocurrency space, potentially leading to changes or new rulings in the future. Meanwhile, Consensys, an Ethereum developer firm led by Joe Lubin, has filed a lawsuit against the SEC for what it perceives as overregulation of the Ethereum blockchain. The lawsuit aims to protect access to ether and the Ethereum blockchain in the U.S., as the SEC’s actions are causing challenges for developers and other entities operating on the platform.
Various asset managers, including Franklin Templeton, have submitted applications for spot Ethereum ETFs, awaiting approval from the SEC. The regulatory body recently extended the deadline for making a decision on Franklin Templeton’s ETF to June 11, adding uncertainty to the approval process. The SEC has also delayed a decision on BlackRock’s ETF application until May 23, with doubts raised about the approval of such applications. The status of Ethereum as a security remains unclear, with potential changes in regulatory guidelines in the future. Consensys, an Ethereum developer firm, has taken legal action against the SEC for what it deems as excessive regulation affecting the ecosystem.
The approval of Ethereum ETFs by the SEC remains uncertain, with various asset managers filing applications for spot ETFs tracking the cryptocurrency. The SEC has delayed decisions on Franklin Templeton and BlackRock’s ETF applications, extending the deadline for approval. Concerns about the classification of Ethereum as a security have been raised, with reports of companies facing subpoenas to label ETH as such. Consensys has filed a lawsuit against the SEC for overregulation of the Ethereum blockchain, aiming to protect access to ether and the platform. Regulatory developments in the cryptocurrency space continue to evolve, requiring entities to stay informed on changes and potential rulings that may impact the industry.
