The US Securities and Exchange Commission (SEC) has decided to delay its ruling on Franklin Templeton’s application for a crypto index exchange-traded fund (ETF) until January 6, 2025. This decision comes after the SEC exercised its right to extend the review period under Section 19(b)(2) of the Securities Exchange Act of 1934.
Originally, the SEC had a deadline of 45 days to make a decision, which would have been on November 22. However, they have chosen to take up to 90 days to further evaluate the proposed rule change and any related issues. If approved, the Franklin Crypto Index ETF would be listed on the Cboe BZX Exchange under the Franklin Crypto Trust with the ticker symbol EZPZ.
This delay in the decision follows a trend in the growing ETF ecosystem, with Brazilian asset manager Hashdex also filing for a crypto index ETF that tracks Bitcoin and Ethereum. Additionally, US-based asset managers are seeking approval for ETFs that track other cryptocurrencies such as XRP, Solana, Hedera, and Litecoin.
The recent US election results, with President Donald Trump’s victory, have sparked optimism in the market, with many firms anticipating a more favorable regulatory environment for the cryptocurrency industry in the near future. VanEck, for example, expressed confidence in the approval of its Solana ETF under Trump’s administration.
Furthermore, US regulators have recently approved options trading for spot Bitcoin ETFs, including BlackRock’s IBIT, Bitwise’s BITB, and Grayscale’s GBTC. The IBIT options saw impressive trading volume of nearly $2 billion on the first day, indicating strong interest in the cryptocurrency market.
Overall, the delay in the SEC’s decision on Franklin Templeton’s crypto index ETF reflects the growing interest and activity in the cryptocurrency ETF space, both in the US and globally. With the regulatory landscape evolving and market sentiment shifting, the future of crypto ETFs remains an area to watch for investors and industry participants alike.