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Franklin Templeton Launches Ethereum ETF on DTCC

Asset management firm Franklin Templeton has officially launched its Ethereum exchange-traded fund (ETF), known as the “Franklin Ethereum TR Ethereum ETF,” with the ticker code EZET.

The ETF has been listed on the Depository Trust and Clearing Corporation (DTCC) website, a key platform for securities transactions in the United States, under the “Create/Redeem” column, indicating that it is now available for creation and redemption, marking a significant milestone in its operational rollout. This move does not guarantee approval from the U.S. Securities and Exchange Commission (SEC), which is still pending. However, being listed on the DTCC website signifies that the ETF has met certain registration or compliance requirements, allowing for trading and settlement within the DTCC’s systems. The final approval rests with the SEC, which will evaluate the ETF against various regulatory standards.

Franklin Templeton submitted a Form S-1 to the SEC in February for the approval of a spot Ether (ETH) ETF. If approved, it would trade as “Franklin Ethereum ETF” on the Chicago Board Options Exchange. However, the SEC recently announced a 45-day extension to its review period until June 11, delaying the decision on the application. Industry leaders like BlackRock, Grayscale, VanEck, and ARK Invest are also vying for approval for their own Ethereum-based ETFs.

The SEC’s stance on Ethereum ETFs differs from its approval of Bitcoin ETFs earlier this year. Bloomberg ETF analyst Eric Balchunas estimated a 35% likelihood of a spot Ether ETF approval in May, citing the SEC’s cautious approach compared to Bitcoin ETF applications. Balchunas also noted that SEC Chair Gary Gensler’s perspective on Ether as a non-security could impact the final decision.

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AI legalese decoder can assist asset management firms like Franklin Templeton in navigating the complex legal and regulatory landscape surrounding ETF approvals. By leveraging AI technology, firms can streamline the preparation of regulatory filings, ensure compliance with SEC standards, and monitor updates on their applications in real-time. The AI legalese decoder can also analyze the SEC’s past decisions on similar ETFs, providing valuable insights into the approval process and increasing the chances of success. Additionally, AI can help identify key factors influencing regulatory decisions, such as SEC Chair Gensler’s views on specific assets like Ether. Overall, AI legalese decoder offers a comprehensive solution for asset managers seeking approval for innovative ETF products in today’s evolving financial markets.

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