Franklin Ethereum ETF Is Listed On DTCC, Although Not Approved Yet

Key Points:

• Franklin Templeton introduces Ethereum ETF EZET, which is listed on DTCC and is awaiting SEC approval.
• Franklin Ethereum ETF’s availability for creation/redemption signifies market access while the SEC decision is pending.
• Analysts foresee lower SEC approval chances for Ethereum ETFs despite industry interest.

Asset management firm Franklin Templeton has made a significant move into the digital asset space with the launch of its Ethereum Exchange-Traded Fund (ETF), dubbed the “Franklin Ethereum TR Ethereum ETF” and coded as EZET.

Franklin Ethereum ETF Has Ticker as EZET, Pending SEC Approval

The launch was revealed through data from the Depository Trust & Clearing Corporation (DTCC), with the ETF listed on the DTCC website, including availability for creation and redemption.

The filing, submitted to the U.S. Securities and Exchange Commission (SEC) on February 12, 2024, marks Franklin Templeton’s entry into the burgeoning Ethereum market. However, the listing on the DTCC website represents a preliminary step, with the SEC’s decision on the fund still pending.

The Franklin Ethereum ETF‘s inclusion in the Create/Redeem column on the DTCC website is crucial, indicating its availability for creation and redemption, facilitating adjustments to its supply in response to market demand. The development shows Franklin Templeton’s strategic expansion and signifies growing interest in digital assets among traditional financial institutions.

Analysts Warn of Uncertain SEC Approval for Ethereum ETFs

The move aligns Franklin Templeton with other industry giants like BlackRock, Grayscale, VanEck, and ARK Invest, who have also entered the Ethereum ETF race. However, the outlook for Ethereum-based funds differs from that of their Bitcoin counterparts. Bloomberg ETF analyst Eric Balchunas suggests a lower probability of SEC approval for Ethereum ETFs, citing the regulator’s less engaged stance compared to the Bitcoin ETF approval process.

Despite regulatory uncertainties, the launch of the Franklin Ethereum ETF offers investors a new avenue to gain exposure to Ethereum without direct ownership, potentially broadening market participation and driving sector growth.