The Securities and Exchange Commission (SEC) has prolonged the decision timeline for Franklin Templeton’s spot Ether ETF application, pushing the deadline to June 11. This extension grants the commission an additional 45 days to evaluate the proposal.
In an announcement made on April 23, the SEC revealed its decision to extend the assessment period for a proposed rule change allowing the listing and trading of shares from the Franklin Ethereum Trust on the Cboe BZX Exchange.
Market analysts are speculating on the SEC’s position regarding spot Ether ETFs, with expectations for a final decision to be made in May, coinciding with application deadlines from other asset managers. Bloomberg ETF analyst James Seyffart previously suggested a potential denial of the current wave of Ether ETF applications.
Yeah our odds of eth ETF approval by May deadline are down to 35%. I get all the reasons they SHOULD approve it (and we personally believe they should) but all the signs/sources that were making us bullish 2.5mo out for btc spot are not there this time. Note: 35% isn't 0%, still… https://t.co/QWQOGZjDC5
— Eric Balchunas (@EricBalchunas) March 11, 2024
While the SEC’s landmark decision in January allowed U.S. exchanges to list spot Bitcoin (BTC) ETFs, uncertainty looms over its approach to Ether. Reports indicate the SEC may be considering classifying Ether as a security, impacting the approval process for Ether ETFs.
Franklin Templeton, boasting significant presence in asset management with over $1.5 trillion in assets under management as of December 2020, saw its spot BTC ETF approved in the initial SEC round. The outcome of the SEC’s evaluation of the Ether ETF application is closely watched by the crypto community and financial institutions due to its potential impact on the broader cryptocurrency market.
