SEC Delays Decision on Franklin Templeton’s Ethereum ETF Application

SEC Delays Decision on Franklin Templeton’s Ethereum ETF Application

The U.S. Securities and Exchange Commission (SEC) has opted to postpone its decision regarding Franklin Templeton’s application to launch an Ethereum exchange-traded fund (ETF). As stated in a document released on the SEC’s official website, the Commission has deemed it necessary to extend the review period to thoroughly assess the proposed rule change and its associated concerns.

The SEC is required to reach a decision on Franklin Templeton’s application by June 11, with the mandate to either approve, disapprove, or initiate further proceedings to evaluate the proposed rule change.

Franklin Templeton submitted its application for an Ethereum ETF spot in February, with plans to appoint Coinbase Custody Trust Company as the custodian for the cryptocurrency. Should the application receive approval, the ETF will be listed on the Chicago Board Options Exchange BZX.

Similar to Bitcoin-based instruments, the proposed ETF structure entails using cash exclusively to create and redeem shares. Following the introduction of the Bitcoin ETF, numerous prominent asset managers have pursued the creation of spot ETFs centered on Ethereum. The SEC’s final decision deadline for Ethereum spot ETF applications submitted by VanEck and ARK/21Shares is set for May 23.

Meanwhile, the Securities and Futures Commission (SFC) of Hong Kong has already given the green light for the launch of spot ETFs based on Ethereum. However, Bosera Asset Management, one of the entities granted regulatory approval, has not yet disclosed the product tickers.

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