U.S. Securities and Exchange Commission (SEC) has delayed ruling on a proposal to launch Franklin Templeton’s exchange-traded fund (ETF) combining ether and bitcoin under the ticker “EZPZ.”
The investment company, Franklin Templeton, had first filed for the Franklin Crypto Index ETF in August, seeking approval to hold both cryptocurrencies within a single fund.
In a filing issued Wednesday, the SEC stated it would delay action on the proposal to allow more time for thorough consideration. The SEC said, “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”
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The SEC extended its ruling for another 45 days period, and has given a tentative timeline of January 6, 2025, as the date by which the agency will either approve or disapprove, or “institute proceedings to determine whether to disapprove, the proposed rule change.” Note that the proposed rule change was first published for comment in the Federal Register on October 8, 2024, with November 22, 2024 being the date of proposed rule change.
If approved, the ETF would be listed on the Cboe BZX Exchange, with Coinbase Custody Trust Company LLC working as the custodian for its digital assets. Note that, as per the filing made by Franklin Templeton, the ETF would include Bitcoin (BTC) and Ethereum (ETH). Apart from this, the investment firm was also considering launching a private altcoin-focused crypto fund for institutional investors, and offering staking rewards.
SEC’s delay comes just a day after options trading for spot bitcoin ETFs, including Bitwise (BITB), became available.The growing number of cryptocurrency-related financial products, such as spot Bitcoin ETFs and spot Ethereum ETFs, approved by the SEC, combined with recent bullish crypto trends, indicates that cryptocurrency is gaining momentum in the conventional investment space.
Also Read: Bitcoin Deficit? Retail Investors Oppose Institutional Buying
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