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Ethereum vs SEC: What next for Franklin Templeton Investments’ ETF

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Franklin Templeton listed its Ethereum ETF on DTCC as part of preparation in case of a green light from SEC. Is there a chance of May approval?

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  • Franklin Templeton lists ETH ETF (EZET) on the DTCC website. 
  • However, May approval odds by the US SEC are still low. 

The Ethereum [ETH] community got excited after Franklin Templeton Investments’ spot ETH ETF was listed on the DTCC website. 

The DTCC (Depository Trust and Clearing Corporation) is a key settlement organization for institutional trades and securities in the US. So, it’s a great step for Franklin’s Ethereum TR Ethereum [EZET] to be listed on DTCC

Franklin Templeton investments

Source: DTCC

However, the US SEC has the final say on approval. Unfortunately, the SEC hasn’t granted Franklin Templeton such a green light.

Delay on Franklin Templeton Investments ETH ETF

On 23rd April, the US SEC delayed the decision on Franklin Templeton’s spot Ethereum ETF proposal and requested more time. Part of the statement read,

“The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

The SEC has also delayed decisions on other potential issuers, such as BlackRock, Van Eck, and Grayscale. With the May 2024 deadline approaching, rejection of the applications is more likely. 

Bloomberg ETF analysts James Seyffart and Eric Balchunas have kept the odds of May approval below 30%.

In a recent interview, Seyffart reiterated the same and suggested that approval may be likely in 2025, 

“I don’t think it’s going to happen later in the year; the odds are slightly higher. But 2025 is looking more possible, but I’ll have a better idea after I see the denial letters.”

Justin Sun, Tron founder, also expected May rejection, stating that, 

“The crypto industry still needs to prepare for a long-term education with regulators, focusing on helping them understand crypto.”

Despite prior statements that Ethereum isn’t a security, like Bitcoin, the SEC has remained muted on ETH status. 

The lack of clarity prompted Consensys, the firm behind the MetaMask wallet, to file a lawsuit against the SEC last week for the court to decide Ethereum’s status. 

In the meantime, ETH prices have remained below $3300 since mid-April. A strong recovery ahead of the Hong Kong spot ETH ETFs launch saw the altcoin hit a high of $3357.

But bulls faced rejection at the short-term resistance level of $3300 again. Ergo, a daily candlestick close above $3300 could confirm further bullish intention, especially if bears don’t breach the $3000 psychological support. 

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Benjamin is a Telecommunication Engineering graduate who is passionate about crypto-markets and unraveling market trends. Armed with charts and patterns, he's interested in making the intricate, complex landscape of digital assets more palatable for every user.
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