The Depository Trust & Clearing Corporation (DTCC) listed the Franklin Templeton Spot Ethereum ETF on its platform and updated its rules on using crypto ETFs as collateralized value.
The Franklin Ethereum TR Ethereum ETF (EZET), an exchange-traded fund (ETF) based on spot ETH quotes launched by management company Franklin Templeton, was added to the asset list of DTCC, a post-trade, clearing, and settlement company providing services to the U.S. financial market.
The DTCC also updated its lending rules that affected the use of crypto ETFs. The platform won’t provide any collateral to crypto exchange-traded funds or allow them to be used as collateral value as part of a line-of-credit (LOC) extension.
Franklin Templeton’s application to issue a spot Ethereum ETF, filed with the U.S. Securities and Exchange Commission (SEC) back on February 12, is still under review. The DTCC listing doesn’t guarantee its approval. However, according to the DTCC website, the fund is already available for investors to create and redeem on the company’s platform.
The SEC’s review is on hold until June 11. If the regulator approves, the Franklin Ethereum ETF will begin trading on the Chicago Board Options Exchange (CBOE). The regulator is also considering applications to launch similar products from BlackRock, Grayscale, VanEck, and ARK Invest. But experts predict a low probability of the SEC’s approval of spot Ethereum ETFs shortly due to the regulator’s stance on Ethereum.
Hong Kong’s financial regulator recently officially approved the issuance of three spot Ethereum ETFs, with trading scheduled to begin on April 30 on the Hong Kong Stock Exchange (HKEX).
