SEC Delays Decision on Franklin Templeton's Ether ETF Proposal; Ruling Extended by 45 Days
Summary:
The US Securities and Exchange Commission (SEC) has announced a delay in deciding on the proposal by Franklin Templeton for a spot Ether (ETH) exchange-traded fund (ETF). The SEC now has until June 11 to reconsider its decision, extending the process by an additional 45 days. This news follows speculation about the future of ETH ETFs, as the SEC approved spot Bitcoin ETFs on US exchanges earlier this year. Franklin Templeton, which secured approval for a BTC ETF, currently manages over $1.5 trillion in assets.
Franklin Templeton's application for a spot Ether (ETH) exchange-traded fund (ETF) is under extended scrutiny, as announced by the US Securities and Exchange Commission (SEC). In their notice dated April 23, the SEC notified that it requires additional time to decide on a proposed rule adjustment that would enable Cboe BZX Exchange to introduce and trade shares of the Ethereum Trust run by Franklin. Now, the commission is set to reassess its stand on the spot ETH ETF by June 11, which grants them an extra 45 days. Market analysts have predicted the SEC's final verdict about the authorization or rejection of a spot Ether ETF to be listed and traded on American exchanges in May, coinciding with the application deadlines for various asset managers. Earlier in March, ETF analyst James Seyffart from Bloomberg hinted that the ongoing Ether ETF applications might likely face rejection. In a related note, a Web3 executive stated in January that Ether ETFs might be delayed as institutions are not fully ready. The green signal from the SEC to list and trade shares of spot Bitcoin (BTC) ETFs came in January, marking a milestone that continues to influence the crypto dealing behaviors of financial institutions. Though there were expectations of a similar move towards a spot ETH ETF, some reports imply the commission might categorize Ether as a security instead. Franklin Templeton's spot BTC ETF received the SEC's approval in their first round. As of December 2020, the company declared managing assets worth above $1.5 trillion.
Published At
4/23/2024 7:52:45 PM
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