The United States Securities and Exchange Commission (SEC) has extended its review of Franklin Templeton’s proposed crypto index ETF until early 2025. This delay comes as the regulatory agency continues to navigate the complexities of the digital asset market.
In a recent letter, the SEC indicated that it had not received any public comments on the proposed rule change, which was initially published on October 8th. As a result, the decision deadline has been pushed back to January 6th, 2025.
This delay is the latest development in the ongoing saga of crypto index ETFs in the United States. In August, Franklin Templeton submitted its application to the SEC, joining a growing list of firms seeking regulatory approval for such products.
Katalin Tischhauser, head of research at Sygnum crypto bank, has previously highlighted the potential benefits of crypto index ETFs. She argues that these products offer investors a more efficient way to participate in the digital asset market, similar to traditional stock index funds like the S&P 500.
The industry has been eagerly anticipating the approval of a crypto index ETF, as it could unlock significant capital inflows into the market. Grayscale Investments, a prominent player in the digital asset space, has also expressed interest in launching a crypto index ETF and has been actively lobbying US regulators to approve its product.
If approved, Grayscale’s crypto index ETF would be a groundbreaking development, setting the stage for a new era of investment in digital assets. By providing a more accessible and diversified way to invest in cryptocurrencies, these ETFs could attract a wider range of investors, including institutional funds and retail investors.
However, the SEC’s cautious approach to regulating cryptocurrencies has led to a series of delays and uncertainties. As the agency continues to grapple with the challenges of this emerging market, the future of crypto index ETFs remains uncertain.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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