The U.S. Securities and Exchange Commission (SEC) has extended its timeline for deciding on Franklin Templeton’s Bitcoin and Ethereum index ETF, pushing the decision date to January 6, 2025. The delay allows the regulatory agency additional time for thorough evaluation of the proposal amid ongoing scrutiny of cryptocurrency investment products.
Regulatory Extension for Franklin Templeton ETF
According to a filing dated November 20, 2024, the SEC deferred its ruling on Franklin Templeton’s crypto index ETF, initially filed on September 19, 2024. The application entered its formal review period on October 8, with the original 35-day review period set to end on November 22, 2024.
The extension signals the SEC’s cautious approach to evaluating the fund’s adherence to crypto market regulations, ensuring comprehensive consideration of potential organizational and market risks. As of now, no public comments on the proposed ETF have been submitted, allowing the SEC to focus on its internal assessments.
Franklin Templeton’s Crypto Expansion Efforts
Franklin Templeton, managing $1.5 trillion in assets, continues to expand its cryptocurrency offerings. Beyond the proposed Bitcoin and Ethereum index ETF, the firm has already launched individual spot Bitcoin and Ethereum ETFs.
Additionally, Franklin Templeton has advanced its blockchain initiatives by integrating its Benji tokenization platform with the Ethereum network. This marks the fifth blockchain supported by the platform this year, following integrations with Aptos, Avalanche, Arbitrum, and Coinbase’s Base.
Broader Crypto ETF Market Developments
The SEC’s cautious stance contrasts with the proactive strategies of other market players. Last week, Bitwise filed a registration to convert its Bitwise 10 Crypto Index Fund (managing $1.3 billion) into an Exchange-Traded Product (ETP). This fund allocates 75% to Bitcoin and 16% to Ethereum, representing 91% of its total holdings.
Bitwise’s filing comes amid growing interest in diversified crypto index funds, which aim to simplify access to cryptocurrency investments for retail and institutional audiences alike. Approval of such products could set a precedent for broader multi-asset crypto offerings.
Outlook for Crypto ETFs
While Franklin Templeton awaits regulatory approval, the SEC’s extended review reflects the agency’s methodical approach to overseeing crypto-related investment products. Despite the delays, momentum in the cryptocurrency ETF market remains strong, with asset managers actively innovating and adapting to meet growing investor demand.
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