SEC Delays Decision on Franklin Templeton’s Spot Ethereum ETF Application

cryptonews.com:

The U.S. Securities and Exchange Commission (SEC) has announced a delay in its decision regarding Franklin Templeton’s proposed spot Ethereum ETF, extending the deadline to June 11, 2024. This news comes from a filing made public today, leaving the future of this financial product uncertain for the time being.

The proposed ETF, initially filed in February, seeks to track the price of ether and would utilize Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.

The SEC’s decision to extend the review period stems from a need for additional time to thoroughly evaluate the proposed rule changes and the complex issues surrounding the classification of Ethereum and its suitability for a spot ETF.

As stated by the SEC, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

This cautious approach mirrors a similar delay for Grayscale’s Ethereum Trust proposal, which seeks to convert into a spot ether ETF following the successful conversion of its Bitcoin trust earlier this year.

This move comes amidst a surge in applications for spot cryptocurrency ETFs, with industry giants like Fidelity and BlackRock joining the race.

Initially, analysts like Bloomberg’s James Seyffart anticipated a decision in May, noting, “Many analysts have speculated that the SEC will reach a final decision on whether to approve or deny a spot Ether ETF for listing and trading on U.S. exchanges in May, during deadlines for applications from several asset managers.”

My cautiously optimistic attitude for ETH ETFs has changed from recent months. We now believe these will