Franklin Templeton crypto index ETF delayed by SEC

Franklin Templeton, one of the crypto exchange-traded fund (ETF) issuers, expressed interest in launching its crypto index ETF, but authorities are now delaying that.

The Securities and Exchange Commission (SEC) has postponed the deadline for approval of Franklin Templeton’s crypto index ETF. Officials expressed concern about the sufficient time they would need to decide whether to accept the proposal, according to the Nov. 20 filing.

“If the Commission finds a longer period appropriate and publishes the reasons therefor, or if the self-regulatory body approves, it may approve the proposed rule change, disapprove the proposed rule change, or decide on this period. Procedures for determining whether the proposed rule change should not be approved,” the SEC filled out.

In August. According to their filing on Sept. 17, Franklin proposed a crypto index ETF by holding Bitcoin (BTC) and Ethereum (ETH) under the ticker EZPZ. The proposed fund would allow two of the world’s most prominent cryptocurrencies to be held under the same index in an unspecified proportion weighted by market capitalization.

If approved by the authorities, EZPZ will exercise its Coinbase custody rights and be listed on the Cboe BZX exchange. Franklin could add another cryptocurrency to the index, but it needs approval from the SEC.

Franklin Templeton turns to crypto

Headquartered in New York, Franklin Templeton is one of the most adaptable asset managers, allowing investors to get more exposure to crypto price movement. Franklin created another crypto-related product after receiving authority approval for a Bitcoin spot ETF in January.

In October. On September 31, they tokenized money market funds onto various blockchains, including Base, Arbitrum, Polygon, Avalanche, Aptos, and Stellar. The US government’s money market fund (FOBXX) has $410 million in assets tokenized on this blockchain.

Franklin is also working with SBI Group in Japan to prepare for the possibility of accepting crypto funding in the country, but the development of this work has not yet been published.