Spot Ethereum ETF: CBOE Files Franklin Templeton’s 19b-4

Franklin Templeton is making progress with respect to its spot Ethereum ETF as the United States options exchange CBOE has filed a 19b-4 on its behalf.

Franklin Templeton is One Step Closer in Spot Ethereum ETF Race

Usually, a 19b-4 is a form used to propose a rule change—documentation that is required when a stock exchange intends to list a new spot ETF product, in this case, Ethereum. Apart from containing details of the proposed rule change, Form 19b-4 also includes clear information on the potential impact of the rule change. It is filed with the SEC by the national securities exchange. 

More than a week ago, Franklin Templeton indicated its interest in offering spot Ethereum ETF by submitting a filing with the U.S. SEC. This was after leading investment asset management firms BlackRock and Ark Invest submitted similar documents to the securities watchdog. Franklin Templeton looked forward to offering an alternative to ETH investment to simplify the process of purchasing, holding, and trading digital assets across multiple platforms. 

The move even led to a jump in the price of Ethereum, opening the gates for a potential $3,500 rally at the time. While the SEC has not shown any intentions of approving the offering, filing a Form 19b-4 is an indication of progress. 

How Close is the US SEC to Approving Spot ETH ETF?

Like in the case of spot Bitcoin ETFs, the submission and amendments from some of the issuers came just before the SEC gave its approval to the offering earlier in January.

Hence, the green light for spot Ethereum ETF may be closer than expected. The crypto community believes that the odds of having the SEC approve the spot Ethereum ETF by May 23 is way over 60% per Bloomberg ETF analysts’ projections.

So far, the SEC has delayed its decision on Grayscale’s Ethereum ETF application and that of BlackRock. Even the decision on Fidelity Investment’s spot Ethereum ETF was postponed to March 4 by the SEC. Compared to many of these potential spot Ethereum ETF issuers, Franklin Templeton looks like the only applicant who has made the 19b-4 move thus far.

In the long run, this may give the asset manager an edge over its counterparts, in terms of approval. It could even be as good as a first-mover advantage, although in the case of spot Bitcoin ETFs, the regulator avoided this as it greenlighted all the applications at the same time.