US SEC Pushes Timeline For Franklin Templeton Crypto Index ETF Decision

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As a seasoned crypto investor with over a decade of experience navigating the volatile world of digital assets, I find myself both intrigued and slightly exasperated by the latest announcement from the US SEC regarding Franklin Templeton’s Bitcoin and Ethereum index ETF.

The U.S. Securities and Exchange Commission (SEC) has postponed its ruling on Franklin Templeton’s Bitcoin and Ethereum index ETF until January 6, 2025. This decision was made in their filing from November 20, 2024, to provide the regulatory body sufficient time to carefully evaluate the proposal.

US SEC Extends Review Period for Franklin Templeton Crypto Index ETF

As a crypto investor, I’ve noticed that, following the US SEC filing on November 20, 2024, the commission has postponed its decision regarding the Bitcoin and Ethereum index ETF by Franklin Templeton. This means that the regulatory body is extending their review period to January 6, 2025, giving them more time to carefully consider the application that was submitted on September 19, 2024.

The initial announcement of the proposal was made in the Federal Register on October 8, initiating a 35-day comment period. This means that the comment period would conclude on November 22, 2024. During this timeframe, the review would expire on the same date. However, the Securities and Exchange Commission (SEC) choosing to postpone the decision suggests a comprehensive examination of the fund’s adherence to crypto regulations.

Currently, no external feedback has been received regarding the proposed rule change, enabling the U.S. Securities and Exchange Commission (SEC) to concentrate on internal evaluations. This pause aligns with the commission’s cautious stance towards products linked to cryptocurrencies. The extended timeframe will facilitate comprehensive study of the fund’s structure and market risks.

Franklin Templeton Expands Push Into Cryptocurrency ETFs

Franklin Templeton is expanding its involvement in the digital currency sector by proposing a Bitcoin and Ethereum Index Exchange-Traded Fund (ETF). This well-known asset manager, managing $1.5 trillion in assets, has already introduced individual Bitcoin and Ethereum ETFs that trade directly.

Should it be accepted, the newly proposed ETF will enrich Franklin Templeton’s collection of cryptocurrency-centered investment offerings, thus expanding the investment choices for institutions.

Furthermore, Franklin Templeton has made a significant advancement in their tokenization initiatives by broadening the scope of their Benji tokenization platform to include the Ethereum network. This is the fifth time this year that the platform has integrated with a blockchain, having already been deployed on Aptos, Avalanche, Arbitrum, and Coinbase’s Base.

Although the U.S. Securities and Exchange Commission (SEC) has been delaying decisions on cryptocurrency exchange-traded funds (ETFs), other market participants are pressing ahead with their plans. For instance, Bitwise recently filed a registration statement to convert the Bitwise 10 Crypto Index Fund, currently managing $1.3 billion, into an Exchange Traded Product (ETP). The fund’s investments in Bitcoin account for approximately 75% of the total assets, while Ethereum makes up about 16%. Together, these two assets constitute around 91% of the fund.

Additionally, this filing is made at a time when diversified crypto index funds are becoming increasingly popular among investors. Bitwise’s action aims to make cryptocurrency investing more accessible for regular investors. If approved, this ETP will pave the way for the growth of multiple-asset crypto-based product offerings, potentially setting a new standard.

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2024-11-21 02:54