It should be noted that while the listing signifies an initial stage in the trading procedure, it does not guarantee that the SEC will ultimately approve the fund.
The DTCC new securities list now includes Franklin Templeton’s planned spot Ethereum ETF, which is trading under the ticker EZET. This news broke the very next day after rumors circulated that the SEC was likely to reject applications for a spot Ethereum ETF.
Although it is a first step towards trading, the Ether Spot ETF’s DTCC filing is no guarantee of SEC approval. The decision on the fund from the SEC is still pending.
Along with other industry heavyweights including ARK Invest, BlackRock, Grayscale, and VanEck, Franklin Templeton applied for an Ethereum spot ETF in February. Having said that, the future of Ethereum-based funds does not seem as bright as that of its Bitcoin-based forebears.
According to Bloomberg ETF expert Eric Balchunas, the chances of the SEC approving a spot Ethereum ETF are barely 25%. He compares the SEC’s involvement with the Bitcoin ETF approval process to their obvious lack of involvement. According to Balchunas, this lack of speech is more of a “tactical” choice than “procrastination.”
JPMorgan analysts predict that the regulatory approval of the spot Ethereum ETF will take a long time. However, they do believe that approval might come after a court challenge, like the one that Grayscale faced, which caused the SEC to reevaluate applications for spot Ethereum ETFs.
According to CoinGecko, Ethereum’s price has been stable between $3,100 and $3,200 since Bitcoin’s fourth halving, indicating that the market performance of Ethereum has been stagnant. Ethereum has lost 1% in the last 24 hours and is now trading at about $3,100.
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