Exploring Franklin Templetonโs Latest Move in the Crypto Market ๐
Financial services powerhouse Franklin Templeton has unveiled its latest venture into the cryptocurrency market by introducing a new spot market Ethereum (ETH) exchange-traded fund (ETF) listed with the Depository Trust and Clearing Corporation (DTCC).
Listing on the DTCC
- The DTCC, established in 1999, functions as a post-trade financial services company offering clearing and settlement services for various markets.
- It has included Ethereum-based exchange-traded products (ETPs) from major financial institutions, including Franklin Templetonโs Ethereum TR Ethereum ETF (EZET), in its products offering page.
- Although the listing on the DTCC is a significant milestone for Franklin Templeton, it does not guarantee automatic approval from regulators.
Regulatory Journey
- Franklin Templeton, along with other industry players like BlackRock, Hashdex, Bitwise, and ARK Invest, submitted applications with the U.S. Securities and Exchange Commission (SEC) to establish spot market ETH-based ETFs.
- The SEC postponed its decision on the matter in March, pushing the final deadline for approval to the end of May.
- Bloomberg ETF analyst Eric Balchunas expressed skepticism about the SECโs willingness to approve a spot market ETH ETF, indicating a potential regulatory challenge.
Comparing Bitcoin and Ethereum ETFs
- While Franklin Templeton received approval for spot market Bitcoin (BTC) ETFs earlier this year, the situation appears different for Ethereum ETFs.
- Company CEO Jenny Johnson previously noted that Bitcoin was just one of many opportunities in the digital assets landscape, hinting at a broader crypto investment strategy.
Hot Take: Whatโs Next for Crypto ETFs and Institutional Adoption in 2022? ๐
As the cryptocurrency market continues to evolve, Franklin Templetonโs foray into spot market Ethereum ETFs signals a growing interest in digital assets among traditional financial institutions. However, regulatory challenges and uncertainties persist, posing potential roadblocks to widespread institutional adoption in the crypto space. Stay tuned for further updates on ETF approvals and the changing landscape of crypto investments in the coming months.
Sources:
Depository Trust and Clearing Corporation (DTCC)
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