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The US SEC postponed Franklin Templeton's application to open an ethereum ETF.
According a document posted on the regulator's website, the Commission considers it appropriate to establish a longer period for action on the proposed rule change to give it sufficient time to consider the proposed rule change and its issues.
The SEC must decide on Franklin Templeton's request by June 11.
“The Commission will approve or disapprove or initiate proceedings to determine whether to disapprove the proposed rule change.”
SEC Filing
In February, Franklin Templeton applied to register a spot in the ethereum ETF. If approved, Coinbase Custody Trust Company will be the custodian of the second largest cryptocurrency by capitalization.
The product will be listed on the Chicago Board Options Board's BZX Exchange if approved. The structure uses only cash to create and redeem ETF shares, similar to how it is implemented in bitcoin-based instruments.
Following the launch of the bitcoin ETF, several leading asset managers have filed applications to create spot ETFs on ethereum. The deadline for final SEC approval of ethereum spot ETF applications filed by VanEck and ARK/21Shares is May 23.
The Hong Kong Securities and Futures Commission (SFC) has already approved the launch of ethereum-based spot ETFs. However, Bosera Asset Management, which received regulatory approval, did not disclose the product codes.
