Franklin Templeton, a well-known issuer of crypto exchange-traded funds (ETFs), has encountered a delay in the approval process of its crypto index ETF by the Securities and Exchange Commission (SEC).
The SEC has extended the deadline for approving the crypto index ETF, expressing concerns about the need for more time to make a decision on whether to approve or reject it. The filing on Nov. 20 outlined the SEC’s decision-making process in such cases, emphasizing the importance of thorough consideration before reaching a conclusion.
In August, Franklin Templeton submitted a proposal for the crypto index ETF, which would include holdings of Bitcoin (BTC) and Ethereum (ETH) under the ticker EZPZ. The fund’s structure would bring together the two leading cryptocurrencies in the market, with their weighting based on market capitalization ratios that were not specified in the filing.
If the ETF is ultimately approved, it would be utilizing Coinbase custody services and would be listed on the Cboe BZX exchange. Any potential additions of other cryptocurrencies to the index would require prior approval from the SEC, emphasizing the regulatory oversight involved in such financial products.
Franklin Templeton, headquartered in New York, has established itself as a flexible asset manager that enables investors to capitalize on the volatility of crypto prices. Following the approval received in January for a Bitcoin spot ETF, the company has continued to expand its crypto-related offerings.
In a move on October 31, Franklin Templeton tokenized money market funds across various blockchains, including Base, Arbitrum, Polygon, Avalanche, Aptos, and Stellar. This initiative involved the tokenization of the U.S. government money market fund (FOBXX), which has assets totaling $410 million across the mentioned blockchains.
Furthermore, Franklin Templeton has been collaborating with SBI Group in Japan to explore the potential acceptance of crypto funds in the country. While details of this partnership’s progress have not been publicly disclosed, it underscores the global reach and strategic partnerships that Franklin Templeton is actively pursuing in the crypto space.