Franklin Templeton, one of the issuers of exchange-traded funds (ETFs) in the field of cryptocurrencies, has expressed interest in issuing an exchange-traded fund based on a crypto index, but the authorities are still postponing its release.
The Securities and Exchange Commission (SEC) has postponed the deadline for approval of the Franklin Templeton crypto index exchange-traded fund. According to a November 20 statement, the authorities expressed concern about the sufficient amount of time needed to decide whether the fund would be approved or rejected.
"The Commission may indicate that if it considers such a longer period appropriate and publishes its reasons for such a decision, or if a self—regulatory organization agrees to this, the Commission will either approve the proposed rule change, reject it, or initiate a case to determine whether the proposed rule change should be rejected," the Commission documents say. Securities and Exchange Commission.
On August 17, based on their application, Franklin proposed creating a crypto index ETF by investing in bitcoin ($BTC
) and Ethereum ($ETH
) under the ticker EZPZ. The proposed fund will combine the two most popular cryptocurrencies in the world within the framework of one index in an unspecified ratio weighted by market capitalization.
If approved by the authorities, EZPZ will use the Coinbase repository and trade on the Cboe BZX exchange. Franklin can add another cryptocurrency to the index, but for this he needs to get approval from the Securities and Exchange Commission.
Franklin Templeton is Switching to Cryptocurrency
Franklin Templeton, based in New York, is one of the most flexible asset managers, which allows investors to make more profit from the movement of cryptocurrency prices. After receiving permission in January to create a spot bitcoin ETF, Franklin created another product related to cryptocurrency.
On October 31, they tokenized money market funds in several blockchains, including Base, Arbitrum, Polygon, Avalanche, Aptos and Stellar. The assets of the U.S. Government Money Market Fund (FOBXX) in this blockchain amount to $ 410 million.
Franklin is also working with SBI Group in Japan to prepare for the possibility of adopting a cryptocurrency fund in that country, but the results of this work have not yet been published.
