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    SEC defers decision on Franklin Templeton Crypto Index ETF to January 2025

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    The US Securities and Exchange Commission (SEC) has deferred its decision on the Franklin Templeton Crypto Index ETF until January 2025. The move comes after the SEC did not receive feedback on the proposed rule change for the ETF listing. In August, Franklin Templeton applied for a crypto index ETF, triggering interest among other companies. The New York Stock Exchange recently sought approval to list Grayscale’s crypto index ETF.

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    So, the US Securities and Exchange Commission (SEC) has decided to push back the decision to green-light the Franklin Templeton Crypto Index ETF. Instead of making the call now, they want to wait until early 2025. They shared this in a letter on Nov 20, after not getting feedback from their proposed rule change that would list the crypto index ETF.

    They said, “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.” So that means they’ve given themselves until January 6, 2025, to approve or turn down the proposed rule change.

    Back in August, Franklin Templeton tossed in an application to get a crypto index ETF going. The head of research at the crypto bank Sygnum, Katalin Tischhauser, thought getting one of these ETFs sorted would be the “next logical step” for digital markets. She explained these indexes can really help investors because they don’t have to pick out winning investments and risk making expensive mistakes. Kind of like how stock indexes work.

    This has got several firms interested in launching a crypto index ETF. Back in October, the New York Stock Exchange (NYSE) wanted to list Grayscale’s crypto index ETF and applied to US regulators for approval. We heard in November that US regulators are still mulling over the approval for the Grayscale ETF.

    If it gets approved, the Grayscale crypto index ETF would be the first of its kind in the US. This could lead to new cash flow into digital markets, like we saw with Bitcoin (BTC) and Ethereum (ETH) ETFs approved earlier in 2024.

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