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U.S. SEC Postpones Franklin Templeton’s Ethereum ETF Application

The U.S. Securities and Exchange Commission (SEC) has recently announced that they will be postponing the application from Franklin Templeton to open an Ethereum Exchange-Traded Fund (ETF).

This decision comes after a document was published on the regulator’s website, stating that the Commission believes it is necessary to extend the period for action on the proposed rule change. This extension will allow the SEC enough time to thoroughly consider the proposed rule change and all related issues.

The deadline for the SEC to make a decision on Franklin Templeton’s application is set for June 11.

“The Commission shall either approve or disapprove or institute proceedings to determine whether to disapprove the proposed rule change.”

SEC filing

In February, Franklin Templeton submitted their application to register an Ethereum ETF. If approved, Coinbase Custody Trust Company will serve as the custodian for the ETF, which would focus on the second-largest cryptocurrency by market capitalization.

The ETF will be listed on the Chicago Board of Options BZX Exchange if it receives approval. The structure of the ETF will involve using cash to create and redeem shares, a process similar to Bitcoin-based instruments.

Since the launch of the Bitcoin ETF, several prominent asset managers have followed suit by filing applications for spot ETFs based on Ethereum. The SEC is expected to make a final decision on the Ethereum spot ETF applications from VanEck and ARK/21Shares by May 23.

Meanwhile, the Securities and Futures Commission in Hong Kong has already given the green light for spot ETFs based on Ethereum to be launched. Bosera Asset Management, one of the approved entities, has not yet disclosed the specific product tickers.

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