Franklin Spot Ethereum ETF Is The Latest Name Delayed By SEC

Key Points:

• The SEC has extended the evaluation period for Franklin spot Ethereum ETF until June 11, 2024.
• The postponement reflects the SEC’s cautious approach towards cryptocurrency-based ETFs.
• Analysts anticipate a final decision on Ethereum spot ETF applications, including Franklin Templeton’s, by May 23.

The United States Securities and Exchange Commission (SEC) has extended the timeline for evaluating Franklin Templeton’s proposed Ethereum exchange-traded fund (ETF) application, delaying its decision until June 11, 2024. This extension grants the SEC an additional 45 days to review the proposal.

Read more: Spot Ethereum ETF vs. Ethereum Futures ETF: Which Is The Better Investment?

SEC Delays Decision on Franklin Spot Ethereum ETF Proposal

Franklin Templeton submitted its S-1 registration statement for the Franklin spot Ethereum ETF in February. The ETF aims to mirror the price movements of Ethereum, with Coinbase Custody Trust Company and the Bank of New York Mellon designated as custodians.

According to the filing on Tuesday, the SEC cited the need for more time to assess the proposed rule changes and related issues, emphasizing the complexity of cryptocurrency-based ETFs. This decision aligns with the SEC’s cautious approach towards such instruments, evident in the postponement of other Ethereum ETF applications from financial giants like VanEck and BlackRock.

Market Anticipation Builds as Deadline Approaches for Ethereum ETF Applications

Additionally, the SEC is facing deadlines for spot Ethereum ETF applications from VanEck and ARK/21Shares, with a final decision expected by May 23. Analysts speculate that the SEC’s ruling on these applications in May may influence its decision regarding Franklin spot Ethereum ETF.

Meanwhile, the Cboe BZX exchange has just proposed modifications to the Franklin Bitcoin ETF, seeking to alter the deadline for cash purchase basket orders from 3 p.m. to 2 p.m. or other times  to enhance flexibility.