SEC delays decision on Franklin Templeton’s crypto Index ETF to 2025

The US Securities and Exchange Commission (SEC) has delayed its decision on Franklin Templeton’s application to launch a crypto index exchange-traded fund (ETF) offering exposure to Bitcoin (BTC) and Ethereum (ETH) to Jan. 6, 2025.

The SEC initially had a 45-day deadline to decide, which would have fallen on Nov. 22. However, under Section 19(b)(2) of the Securities Exchange Act of 1934, the SEC can extend this period up to 90 days if it finds the additional time necessary to evaluate the rule change and any associated issues.

If approved, the Franklin Crypto Index ETF, filed on Aug. 17, would trade on the Cboe BZX Exchange under the Franklin Crypto Trust with the ticker EZPZ.

Flourished ETF ecosystem

Brazilian asset manager Hashdex filed to launch its own crypto index ETF in June. The Hashdex Nasdaq Crypto Index US ETF would track BTC and ETH. 

At the same time, asset managers in the US are seeking the approval of ETFs tracking other crypto, such as XRP, Solana (SOL), Hedera (HBAR), and Litecoin (LTC). 

President Donald Trump’s victory in the US elections has resulted in heightened market optimism, with many firms expecting a favorable regulatory environment for the industry in the coming months. VanEck previously stated that its Solana ETF was a “bet” on Trump’s reelection and expects the application to be greenlighted under his administration.

US regulators recently gave final approvals to launch options trading for spot Bitcoin ETFs, namely BlackRock’s IBIT, Bitwise’s BITB, and Grayscale’s GBTC

IBIT options recorded nearly $2 billion in trading volume on the first day of trading, with analysts commenting that the numbers were remarkable.

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