The Securities and Exchange Commission (SEC) has opted to prolong its evaluation of Franklin Templeton's Ethereum-based ETF until June 11, 2024, in order to conduct further analysis of the proposal.

Franklin Templeton initially submitted the S-1 registration statement for the Franklin Ethereum Exchange-Traded Fund (ETF) in February 2024. The ETF, designed to track Ethereum's price, has appointed Coinbase Custody Trust Company and the Bank of New York Mellon as custodians.

The SEC's decision to extend the review period stems from the need for additional time to examine the proposed rule modifications and potential associated issues. This extension allows the agency to thoroughly consider the proposal and any concerns raised.

It's worth noting that the SEC has also delayed other Ethereum ETF applications, including those from financial giants VanEck and BlackRock. The cautious stance on cryptocurrency-based ETFs reflects the complexity of regulating these relatively new financial instruments.

Despite hopes for Ethereum ETF approvals, analysts, including those at JPMorgan, have adjusted their expectations, with the probability of approval decreasing from 70% to around 30%. Nevertheless, the market impact of spot Bitcoin ETFs has been positive, suggesting potential benefits if Ethereum ETFs receive approval.

Despite the delay, the price of Ethereum (ETH) has remained optimistic, currently standing at $3,234, indicating a 1.52% increase from the intra-day low.