Franklin Templeton Ether ETF Listing Raises Hopes for Approval

• A surprise development has upended rumors about the SEC rejecting spot Ethereum ETFs.
• Franklin Templeton’s proposed ETF has landed on a key list, but the SEC’s decision on its approval remains unclear.
• Analyst predictions have clashed. One sees slim chances of approval, while another points to a potential lawsuit.
  

Despite rumors swirling about the SEC’s potential rejection of spot Ethereum ETFs in May, a recent development throws a curveball into the mix. Franklin Templeton’s proposed spot Ethereum ETF, just one of several applications from major players, has been listed on the Depository Trust and Clearing Corporation’s (DTCC) new securities list under the ticker EZET.

DTCC Listing a Step Forward, But SEC Decision Looms

The DTCC listing serves as a preliminary step towards readability but doesn’t guarantee a green light from the SEC. The regulatory body’s decision on the Franklin Templeton fund and others remains pending.

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Experts seem divided on the likelihood of approval. Bloomberg ETF analyst Eric Balchunas throws cold water on the chances, estimating a mere 25% possibility . He highlights the SEC’s relative silence on the issue compared to their active engagement during the Bitcoin ETF approval process. 

Balchunas interprets this lack of communication as a deliberate strategic move by the SEC rather than simply a delay. JPMorgan analysts, however, take a more optimistic view. While acknowledging a potential delay, they believe eventual approval could be achieved through legal challenges similar to Grayscale’s lawsuit against the SEC. 

Grayscale’s lawsuit compelled the SEC to re-evaluate spot Ethereum ETF applications. Meanwhile, the Ethereum market itself seems to be in a wait-and-see mode following Bitcoin’s fourth halving event. 

ETH Price Stalls Around $3,100: What’s Next?

CoinGecko data shows Ethereum’s price hovering between $3,100 and $3,200 for some time. At the time of writing, Ethereum is trading at around $3,150, reflecting a slight increase of 1% in the last 24 hours.

The DTCC listing offers hope for easier access to Ethereum for traditional investors. However, the path to SEC approval remains shrouded in uncertainty. With industry giants vying for a piece of the Ethereum ETF market and analysts offering contrasting outlooks, the coming months will be crucial for determining the future of these investment vehicles.

On the Flipside

• The DTCC listing is a procedural formality and not a sign of leaning toward approval by the SEC.
• The SEC’s silence on Ethereum ETFs could be a strategic move to avoid repeating the mistakes of the Bitcoin ETF approval process.

Why This Matters

The DTCC listing, despite not guaranteeing approval, adds a layer of intrigue as it suggests Franklin Templeton is confident about their application. This, coupled with contrasting outlooks from experts, creates a wait-and-see situation for investors wondering if a spot Ethereum ETF will become a reality.

Still waiting on the green light for Ether ETFs? This article explores the reasons behind the SEC’s delay and what it could mean for the Ethereum market:
Ether ETFs Approval in Doubt, But Not Impossible: Here’s Why

The wait for Ether ETFs continues as the SEC delays its decision on two filings. This article explores the recent delays and dwindling hopes for approval:
ETH ETF Wait Continues as SEC Delays Decision on Two Filings