SEC postpones decision on Franklin Templeton cryptocurrency index ETF

The US Securities and Exchange Commission (SEC) recently announced that they are delaying a decision on the approval of a Franklin Templeton Crypto Index ETF until early 2025. This decision comes after no comments were received following the publication of a proposed rule change on October 8.

In a letter dated November 20, the SEC explained that they need more time to thoroughly consider the proposed rule change and the related issues. As a result, they have set January 6, 2025, as the deadline for either approving, disapproving, or beginning proceedings to determine the outcome of the proposed rule change.

This delay in decision-making has been eagerly awaited by the industry, as many firms, including Franklin Templeton, have expressed interest in launching a crypto index ETF in the US. In fact, in August, Franklin Templeton submitted their application to the SEC for a crypto index ETF, marking a significant step forward in the digital asset market.

According to Katalin Tischhauser, head of research at the Sygnum crypto bank, crypto index ETFs represent the next logical progression for digital asset markets by allowing investors to participate in market gains without the need to select individual assets. This efficiency mirrors the success of traditional stock indexes like the S&P 500.

It’s not just Franklin Templeton in the game – the New York Stock Exchange has also shown interest in listing a Grayscale crypto index ETF. This move could pave the way for more capital flowing into digital asset markets, similar to the impact of Bitcoin and Ether ETFs approved earlier in 2024.

The potential approval of the Grayscale crypto index ETF would be a groundbreaking development in the US and could open up new opportunities for both investors and the digital asset market. Stay tuned for further updates as the SEC continues to deliberate on this important decision.