The U.S. Securities and Exchange Commission (SEC) has delayed the decision on Franklin Templeton’s application to launch an Ethereum Exchange-Traded Fund (ETF).
In a recent document published on the SEC’s website, the Commission has decided to extend the review period to thoroughly evaluate the proposed rule change and its implications. The SEC is expected to make a decision on Franklin Templeton’s application by June 11.
This move comes after Franklin Templeton submitted a filing in February to register an Ethereum ETF. If approved, the custody of the ETF will be handled by Coinbase Custody Trust Company, focusing on the second-largest cryptocurrency in terms of market capitalization.
The Ethereum ETF will be listed on the Chicago Board Options Exchange (BZX) if the application receives approval. The structure of the ETF will involve using cash to create and redeem shares, similar to existing Bitcoin-based instruments.
Since the successful launch of a Bitcoin ETF, several prominent asset managers have followed suit by applying to create spot ETFs for Ethereum. The SEC is expected to make a decision on Ethereum ETF applications from VanEck and ARK/21Shares by May 23.
While the Hong Kong Securities and Futures Commission (SFC) has already approved the launch of spot ETFs based on Ethereum, Bosera Asset Management, another approved entity, has not yet disclosed the product tickers.
In related news, the SEC is currently seeking comments on three spot Ethereum ETF filings, with analysts expressing mixed sentiments on the outlook for these applications.

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