Recently, the U.S. Securities and Exchange Commission (SEC) revealed a deferment in its verdict concerning a proposed rule alteration for the listing and trading of shares belonging to the Franklin Ethereum ETF, a component of the Franklin Ethereum Trust.

The SEC has extended the timeline for commission determination according to BZX Rule 14.11(E)(4), which pertains to Commodity-Based Trust Shares.

BZX Rule 14.11(E)(4), commonly referred to as the Commodity-Backed Trust Shares rule, denotes a directive established by the Cboe BZX Exchange. This rule delineates the guidelines for the issuance of a specified aggregate minimum number of securities by a trust in return for the deposit of a predetermined quantity of the underlying commodity intended for the ETF.

When this predetermined number of securities is amassed, they become eligible for repurchase by the trust upon the owner's request. Subsequently, the trust will facilitate the delivery of the underlying commodity to the owner who opts to sell back the asset.

Fundamentally, BZX Rule 14.11(E)(4) is crafted to uphold equitable trading standards and safeguard investor interests within the realm of commodity-backed trust shares.

In February, Franklin Templeton, a firm renowned for its ownership of a Bitcoin Spot ETF, filed an application for an Ethereum Spot ETF, marking an expansion of their investment offerings into the Ethereum market.