Originally published on: November 20, 2024
The United States Securities and Exchange Commission (SEC) has announced a delay in the decision regarding the approval of a Franklin Templeton Crypto Index ETF. The decision, initially expected to be made soon, has now been pushed back to early 2025.
According to a letter dated Nov. 20, the SEC stated that no comments had been received after a proposed rule change was published on Oct. 8, concerning the listing of the crypto index ETF. The regulatory agency designated January 6, 2025, as the date by which a final decision will be made.
The delay comes amidst growing interest in crypto index ETFs in the digital asset markets. Franklin Templeton applied for the ETF in August, with experts suggesting that this move was the next logical step for the industry. Katalin Tischhauser, head of research at the Sygnum crypto bank, highlighted the efficiency and ease of participation that these indexes offer to investors.
Apart from Franklin Templeton, other firms are also looking to launch crypto index ETFs in the US. In October, the New York Stock Exchange showed interest in listing a Grayscale crypto index ETF, seeking regulatory permission to do so. US regulators are currently considering this proposal, which could mark a significant milestone by unlocking new capital flows into digital asset markets.
Approval of the Grayscale crypto index ETF would pave the way for further advancements in the industry, similar to the approval of Bitcoin and Ether ETFs earlier in 2024. As the market continues to evolve, the potential for growth and innovation in the crypto sector remains promising.
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