Approval in sight? The first spot Ethereum ETF appears on the DTCC website listing

Franklin Templeton’s Ethereum spot ETF ticker has appeared on the Depository Trust and Clearing Corporation’s (DTCC) listing, which could be a sign that the U.S. Securities and Exchange Commission (SEC) may approve an Ethereum ETF.

Franklin Templeton’s spot Ethereum ETF is listed by DTCC

On Friday, April 26, the Ethereum spot ETF proposed by American multinational investment company Franklin Templeton made its debut on the official website of DTCC with the code EZET.

Franklin Templeton’s new listing on the DTCC platform comes against the backdrop of the SEC’s ongoing deliberations to approve a spot Ethereum ETF. Back in January, following the approval and launch of a spot Bitcoin ETF, many analysts expected more cryptocurrency ETFs to emerge, with speculation focusing on Ethereum becoming the next cryptocurrency to receive an ETF after Bitcoin.

However, although well-known financial services companies such as BlackRock, Grayscale, VanEck, Fidelity and others have submitted applications for spot Ethereum ETFs, US SEC approval has been delayed.

The regulator disclosed in a recent filing on Tuesday, April 23, that it will designate a longer period of time to decide on its appropriate course of action on Franklin Templeton and Grayscale’s proposed spot Ethereum ETF. The committee has set June 11 as a new deadline to approve or reject the Ethereum spot ETF proposal.

The move appears to have been anticipated by other crypto and financial experts in the industry, as Jan Van Eck, an analyst at Standard Chartered Bank and CEO of VanEck, had previously expressed doubts about the possibility of the U.S. SEC authorizing a spot Ethereum ETF soon.

Does the new listing signal impending approval?

The recent addition of Franklin Templeton’s proposed spot Ethereum ETF to the DTCC list is considered a first step in the transaction process and does not guarantee approval by the SEC, which has the exclusive authority to approve or reject such investment products.

Prior to approving the spot Bitcoin ETF, the DTCC had listed a previously proposed spot Bitcoin ETF by BlackRock on its platform, fueling speculation and raising hopes of possible SEC approval. However, the clearing firm later removed BlackRock’s Bitcoin ETF from its platform and clarified that the listing did not constitute the SEC’s endorsement of the spot Bitcoin ETF application.

While anticipating the approval of an Ethereum spot ETF, the U.S. SEC remains vague on its stance. Bloomberg senior ETF analyst Eric Balchunas also revealed earlier in March that their chances of approval for an Ethereum ETF were only 25%, reflecting a rather pessimistic outlook.

Overall, the broader crypto market is still closely watching developments surrounding Franklin Templeton and other financial firms’ Ethereum spot ETF applications and the SEC’s final decision, acknowledging potential approval as a step forward for the digital asset space An important step.

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