Ethereum takes center stage as the United States Securities and Exchange Commission (SEC) stirs anticipation by delaying its decision on Franklin Templeton’s application for a spot Ether exchange-traded fund (ETF).
This puts Ethereum at the center of attention. Many people thought the decision would be made soon, but the SEC has pushed it back, now it will be made on June 1.
Analysts in the field were surprised by the SEC’s news because they thought the agency would make a decision in May, which was when many other ETF applications were due. The plan from Franklin Templeton to list and trade shares of the Franklin Ethereum Trust on the Cboe BZX Exchange will now be looked at more closely for an extra 45 days.
Ethereum Security Concerns Arise
Some experts thought that Ether ETFs would be approved because the SEC approved spot Bitcoin ETFs in January, but new signs point to a possible problem. There is a lot of talk that the SEC might be thinking about making Ether a security, which would have a big effect on how financial companies treat it.
Analyst for ETFs at Bloomberg named James Seyffart had previously expressed doubt, saying that the current wave of applications for Ether ETFs would “ultimately be denied.” This feeling is very different from the positivity surrounding Franklin Templeton’s spot Bitcoin ETF, which was approved by the SEC in the first round of reviews.
As of December 2020, Franklin Templeton managed more than $1.5 trillion in assets. The company now has to wait nervously while the SEC decides what to do with its Ether ETF. This ruling could have a major effect on the cryptocurrency market, changing the way investors and institutions do business in the future.
