SEC delays decision on Franklin Templeton crypto index ETF
The United States Securities and Exchange Commission (SEC) has delayed its decision to approve Franklin Templeton's crypto index ETF until early 2025.
In a November 20 letter, the regulatory agency stated that it did not receive any comments after publishing a proposed rule change to list crypto index ETFs on the Federal Register on October 8, 2024. SEC officials wrote:
“The Commission finds it appropriate to set aside an extended period of time to act on the proposed rule change, so that it will have sufficient time to modify the proposed rule and consider the issues raised.”
The SEC continued, “Accordingly, the Commission, pursuant to section 19(b)(2) of the Act, designates January 6, 2025 as the date by which the Commission may approve or disapprove or file objections.” , the proposed rule has been modified.
SEC letter requesting additional discussion time. Source: SEC
Related: US regulators approve Greyscale crypto index ETF
Industry awaits long-awaited crypto index ETFs.
In August, Franklin Templeton filed with the SEC for a crypto index ETF. At the time, Signum Crypto Bank's head of research Kathleen Tischhauser told Cointelegraph that crypto index ETFs were the “next logical step” for digital asset markets.
Tischhauser explains that indexes allow investors to participate in the market without having to personally pick winners and make extensive, time-consuming and often costly mistakes. This efficiency is what led to the meteoric rise of stock indexes like the S&P 500, the researcher explained.
Likewise, Franklin Templeton is far from the only firm looking to launch a crypto index ETF in the United States. In October, the New York Stock Exchange expressed interest in listing Greyscale's crypto index ETF and has sought approval from US regulators to list a commercial finance vehicle.
Most recently, in November, US regulators indicated that they were considering listing the Greyscale ETF.
The approval of the Greyscale crypto index ETF is the first of its kind in the United States and opens up new capital flows into digital asset markets – similar to the Bitcoin (BTC) and Ether (ETH) ETFs of 2015. In the year 2024
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