SEC Delays Decision on Franklin Templeton’s Crypto Index ETF

The Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s proposed crypto index ETF, which aims to track the performance of Bitcoin (BTC) and Ethereum (ETH).

According to a filing on November 20, the SEC expressed concern that it needed more time to decide whether to approve or decline the proposal. The Commission stated that it may designate a longer period to review the proposal, during which it will either approve, disapprove, or institute proceedings to determine whether the proposed rule change should be disapproved.

Proposal Details

Franklin Templeton, a New York-based asset manager, initially proposed the crypto index ETF on August 17. The fund, which would be listed on the Cboe BZX exchange and use Coinbase custody, would track the performance of BTC and ETH with an unspecified ratio weighted by market capitalization. If approved, Franklin Templeton may also add other cryptocurrencies to the index, subject to SEC approval.

Franklin Templeton’s Crypto Ambitions

Franklin Templeton has been actively expanding its presence in the cryptocurrency market. In January, the company received approval for a Bitcoin spot ETF. More recently, on October 31, it tokenized its money market fund into several blockchains, including Base, Arbitrum, Polygon, Avalanche, Aptos, and Stellar. The U.S. government money market fund (FOBXX) has $410 million in assets tokenized into these blockchains.

Franklin Templeton is one of the most adaptable asset managers, allowing investors to gain more exposure to crypto price movements.

In addition to its tokenization efforts, Franklin Templeton has also partnered with SBI Group in Japan to prepare for the possibility of accepting crypto funds in the country. However, the development of this project has not been publicly disclosed.

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