SEC Delays Decision on Franklin Templeton Crypto Index ETF

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Franklin Templeton, a company that issues crypto exchange-traded funds (ETFs), has expressed interest in launching a crypto index ETF. However, the regulatory authorities have caused a delay in its release. According to a filing on November 20th, the Securities and Exchange Commission (SEC) has extended the deadline for approving Franklin Templeton’s crypto index ETF.

The authorities have cited the need for more time to thoroughly review and make a decision on whether to accept or reject the proposal.

“The Commission may decide to designate a longer period if it believes it is necessary to do so and explains the reasoning behind its decision. In cases where the self-regulatory organization agrees, the Commission will either approve the proposed rule change, reject it, or initiate further proceedings to determine whether it should be rejected,” the SEC filings state.

On August 17th, Franklin proposed to launch a crypto index ETF, called EZPZ, that would hold Bitcoin (BTC) and Ethereum (ETH) with the ticker EZPZ. The proposed fund would provide exposure to the two most well-known cryptocurrencies in the world, at an unspecified ratio weighted by their respective market capitalizations.

If approved by the authorities, EZPZ would be managed by Coinbase custody and trade on the Cboe BZX exchange. While Franklin may choose to add other cryptocurrencies to the index in the future, it must first obtain approval from the SEC.