Key Points
- Franklin Templeton has listed its spot ETH ETF on the DTCC website, though approval by the US SEC is uncertain.
- Despite the listing, Ethereum prices remain below $3300 with analysts predicting a possible approval in 2025.
Franklin Templeton has listed its spot Ethereum (ETH) ETF on the Depository Trust and Clearing Corporation (DTCC) website, sparking excitement within the ETH community.
The DTCC is a significant settlement organization for institutional trades and securities in the United States, making the listing a significant move for Ethereum.
SEC’s Approval Still Pending
However, the US SEC has the final say on approval. Despite the listing, the SEC has not yet granted Franklin Templeton the necessary approval.
On April 23rd, the SEC delayed its decision on Franklin Templeton’s spot Ethereum ETF proposal, requesting more time to consider the proposed rule change and the issues raised therein.
The SEC has also postponed decisions on other potential issuers, such as BlackRock, Van Eck, and Grayscale. With the May 2024 deadline approaching, rejection of the applications seems more likely.
Odds of Approval
Bloomberg ETF analysts James Seyffart and Eric Balchunas have estimated the odds of approval in May to be below 30%. In a recent interview, Seyffart suggested that approval might be more likely in 2025.
Tron founder Justin Sun also anticipates a May rejection, stating that the crypto industry needs to prepare for long-term education with regulators.
Despite prior statements that Ethereum is not a security, like Bitcoin, the SEC has remained silent on ETH status. This lack of clarity led Consensys, the company behind the MetaMask wallet, to file a lawsuit against the SEC last week for the court to determine Ethereum’s status.
Meanwhile, Ethereum prices have stayed below $3300 since mid-April. A strong recovery ahead of the Hong Kong spot ETH ETFs launch saw the altcoin reach a high of $3357. However, the bulls faced rejection at the short-term resistance level of $3300 again. A daily candlestick close above $3300 could signal further bullish intention, especially if bears don’t breach the $3000 psychological support.
