SEC Delays Decision on Crypto Index ETF by Franklin Templeton. The U.S. Securities and Exchange Commission (SEC) has announced that Franklin Templeton’s Crypto Index Exchange-Traded Fund (ETF) will not receive approval until January 2025. The SEC announced the delay in a letter dated November 20, 2024, after the proposal was published in October and no public comments were received.
The regulatory body has more time to think through the ramifications of the proposed rule change thanks to this ruling. The SEC has rescheduled its original deadline of November 2024 to January 6, 2025 due to this delay. If authorized, the ETF would house two of the biggest cryptocurrencies by market value—Bitcoin and Ethereum—in a single fund.
Franklin Templeton, a multinational financial business with assets over $1.5 trillion, initially submitted the Crypto Index ETF for approval in August. By eliminating the need to invest in individual cryptocurrencies, the ETF seeks to provide investors with a simpler means of gaining exposure to these digital assets. The business is also thinking about introducing a comparable cryptocurrency fund that targets institutional investors.
The SEC’s prolonged review timeframe reflects the increased interest in financial products tied to cryptocurrencies. Other companies, like Bitwise and Grayscale, have also applied for approval of crypto-related ETFs in addition to Franklin Templeton’s, signaling a trend toward increased institutional use of digital assets.Notwithstanding the hold-up, analysts think that the authorization of cryptocurrency exchange-traded funds (ETFs) may allow for additional capital inflows into the digital asset market, which could alter the crypto investment environment. Given the notable growth of both Bitcoin and Ethereum, investors and market participants will be closely monitoring the SEC’s decision.
