Key Points
Franklin Templeton, a renowned crypto exchange-traded fund (ETF) issuer, has shown interest in launching a crypto index ETF. However, the approval process has been delayed by the authorities.
The Securities and Exchange Commission (SEC) has postponed the approval deadline for Franklin Templeton’s crypto index ETF. According to a filing on November 20, the authorities expressed concerns about needing more time to decide on the ETF’s approval.
The SEC stated, “The Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved.”
Franklin Templeton’s Crypto Initiatives
On August 17, Franklin Templeton proposed the crypto index ETF, which would hold Bitcoin (BTC) and Ethereum (ETH), under the ticker EZPZ. This fund would bring together the two most prominent cryptocurrencies, with an unspecified ratio weighted by market capitalization.
If the authorities approve, EZPZ would use Coinbase custody and be listed on the Cboe BZX exchange. Franklin Templeton may add another cryptocurrency to the index, pending SEC approval.
Franklin Templeton, based in New York, is a flexible asset manager that allows investors to gain more exposure to cryptocurrency price movements. After receiving approval for a Bitcoin spot ETF in January, Franklin Templeton created another crypto-related product.
On October 31, the company tokenized money market funds on several blockchains, including Base, Arbitrum, Polygon, Avalanche, Aptos, and Stellar. The U.S. government money market fund (FOBXX) has $410 million in assets tokenized on these blockchains.
Franklin Templeton is also collaborating with the SBI Group in Japan to prepare for the potential acceptance of the crypto fund in the country. However, the progress of this initiative has not been disclosed yet.
