Key Takeaways
- SEC stated that the additional time would allow for a more thorough review of the proposed ETF
- Franklin Templeton’s proposal for a crypto index ETF aims to provide institutional investors with exposure to BTC and ETH
The U.S. Securities and Exchange Commission (SEC) has extended its review period for Franklin Templeton’s proposed Bitcoin and Ethereum Crypto Index Exchange-Traded Fund (ETF) until January 6, 2025.
The decision, announced in a filing on November 20, 2024, follows the SEC’s publication of the proposed rule change on October 8, 2024, and the subsequent 35-day comment period, which ended on November 22, 2024. No public comments were submitted during this period.
In its filing, the SEC stated that the additional time would allow for a more thorough review of the proposed ETF and its compliance with relevant regulations. “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein,” the SEC explained.
Franklin Templeton’s proposal for a crypto index ETF aims to provide institutional investors with exposure to Bitcoin and Ethereum. The firm, which manages $1.5 trillion in assets, has previously launched spot Bitcoin and Ethereum ETFs. If approved, the proposed ETF would add to Franklin Templeton’s existing portfolio of crypto-related financial products.
The SEC’s delay reflects a continued cautious approach to cryptocurrency-related ETFs. Although the SEC has approved a number of cryptocurrency-related products in recent months, including Bitcoin ETFs, the agency has taken a measured approach in reviewing other products tied to digital assets. Experts say that the delay of Franklin Templeton’s ETF proposal indicates that the SEC is carefully evaluating the potential risks and regulatory implications of such investment vehicles.
Meanwhile, other firms have also made moves in the crypto ETF space. Bitwise, for example, has filed to convert its $1.3 billion Bitwise 10 Crypto Index Fund into an Exchange-Traded Product (ETP), and Brazilian asset manager Hashdex filed in June 2024 for a crypto index ETF that would track Bitcoin and Ethereum.
In addition to its crypto ETF proposals, Franklin Templeton has been expanding its tokenization efforts, recently integrating its Benji platform with Ethereum. The integration is part of the firm’s broader strategy to diversify its offerings within the cryptocurrency and digital asset markets.