Franklin Templeton Lists Ethereum ETF on DTCC – Here Is What It Means

Franklin Templeton Lists Ethereum ETF on DTCC – Here Is What It Means
  • Financial goliath Franklin Templeton has listed its Ether ETF, EZET, on the Depository Trust and Clearing Corporation’s website.
  • This is an important step toward getting a financial product publicly listed for trading.
  • However, without an approval from the US Securities and Exchange Commission, Ether ETFs will remain nothing more than a nice idea.
  • Analysts in the industry are becoming more bearish regarding a potential ETF approval.

The lead-up to Bitcoin’s spot ETF approval included a media frenzy the likes of which crypto hasn’t seen. Speculative tweets, fake news and doctored images turned a routine regulatory decision into a twisting narrative that single-handedly warped the price of Bitcoin depending on media sentiment. Now, with the ETF finally operational – it’s Ethereum’s turn. And despite negativity starting to take hold (with regards to an Ether ETF approval), that hasn’t stopped financial institutions from filing products with important US regulators.

Related: Reuters: Spot Ethereum ETF Likely to Face Denial Next Month

EZET Listed on DTCC As Analysts Suggest Fading Hopes for Ether ETF

Franklin Templeton, one of the world’s biggest asset managers, has formally entered the Ether ETF game, listing its fund with the Depository Trust and Clearing Corporation. The product – The Franklin Ethereum TR Ethereum ETF (EZET) – can be found on the DTCC website in an important step toward public listing.

However, it is vital to note that this has very little bearing on an Ether ETF approval. Ultimately, Franklin Templeton could list 100 Ether ETFs on the DTCC website, but if the SEC doesn’t allow them to be traded, it will be for nought. 

On that front, many in the industry are preparing for at best further delays, and at worst, an outright approval following ‘discouraging meetings’ throughout April. Similarly, Bloomberg analysts are slowly becoming more bearish towards the prospects of an Ether ETF approval, citing the SEC’s relative silence on the matter.

Apparently there’s a lot of people that need to hear this:

Asking for public comments on a 19b-4 is standard procedure. Every single 19b-4 ETF filing goes through the same process (whether approved or denied) It’s not “bullish” in any capacity for #Ethereum ETFs

That is all. pic.twitter.com/fbKMIQbSbC

— James Seyffart (@JSeyff) April 3, 2024

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Whereas signs pointed fairly heavily toward a Bitcoin ETF approval to start the year, the same signals are not being transmitted for its Ethereum-based cousin. The SEC’s decision may weigh heavily on Ethereum’s short-term performance, with the coin falling from its 2024 high of USD $4K (AUD $6,1200) by nearly 20%.

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