Ethereum (COIN: $ETH) is a popular decentralized ecosystem for DApps and the second biggest crypto coin by market cap after BTC.
Franklin Templeton, a subsidiary of Franklin Resources, which manages over $1.5 trillion in clients’ assets, announced on April 27 that it launched an Ethereum Exchange Traded Fund.
SEC Delays Approval for ETH Spot ETF
The ETF has been named “Franklin Ethereum TR Ethereum ETF” with the code EZET and is listed on DTCC (Depository Trust and Clearing Corporation), a leading platform for securities trading. This ETF launches a week after an ETH ETF launched in Hong Kong.
The website displays the ETF and confirms its availability for creation and redemption. However, it does not guarantee any approval of S-1 filing from the U.S. SEC. S-1 is the registration form from the SEC for filling ETFs or any investment security.
Franklin Templeton submitted their S-1 filling on February 12, 2024. However, the SEC delayed the approval on April 23, with the final date for the approval pushed to June 11, 2024.
Bloomberg ETF Analyst Eric Balchunas said there is only 35% of approval for ETH ETF.
“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 poss, and and long-term we think it will happen.”
Consensys Files Lawsuit Against SEC
Consensys, a software development company, filed a lawsuit against them and its five commissioners, claiming it tried to regulate ETH as a security. The filing mentioned SEC records and Chair Gary Gensler’s 2018 statement declaring Ethereum was not a security, cautioning about the potential consequences if the commission altered its stance after companies had established their businesses relying on regulatory precedent.
The filing cited, “The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network and Consensys.”
It also mentioned, “Every holder of ETH, including Consensys, would fear violating the securities laws if he or she were to transfer ETH on the network.”
Ethereum Performance
Ethereum is trading at $3,250.54, with a gain of 3.16% in the past 24 hours. Its price has fallen by 6.32% in the past month, driven by the Middle East crisis. The market cap is $369 billion, with a 24-hour trading volume of $11 billion.
Should You Invest in Ethereum?
Ethereum is a great asset for investing in and diversifying your portfolio. The approval of ETH ETF by the SEC is expected in June, which could fuel a price surge as institutional funds pour into the ecosystem. However, it is important to stay cautious with the latest crypto updates.
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