The US Securities and Exchange Commission (SEC) has delayed the decision regarding Franklin Templeton’s application for a spot Ether exchange-traded fund (ETF).
The Securities and Exchange Commission (SEC) announced on April 23 that it had extended the period for comments on a proposed rule change that would permit the Cboe BZX Exchange to list and trade the Franklin Ethereum Trust shares. 45 days will pass before the commission reevaluates its immediate ETH ETF decision until June 11.
During the application deadlines for several asset managers in May, numerous analysts hypothesized that the SEC would make a definitive decision regarding listing and trading spot Ether ETFs on U.S. exchanges.Â
James Seyffart, an analyst at Bloomberg ETFs, predicted in March that the ongoing round of Ether ETF applications would “ultimately come down to rejection.”
The SEC’s January decision to permit U.S. exchanges to list and trade spot Bitcoin ETF shares was a turning point that will likely continue to influence how financial institutions manage cryptocurrencies.
Despite initial speculation that the commission would likely issue a spot ETH ETF, reports indicate that it may be attempting to categorize Ether as a security.
SEC spot BTC ETFs, including Franklin Templeton’s, were in the initial approval phase. The firm disclosed it had over $1.5 trillion in assets under management as of December 2020.
