On November 20, 2024, the U.S. Securities and Exchange Commission (SEC) announced it would delay its decision on Franklin Templeton's proposed crypto index ETF until January 6, 2025. This ETF aims to provide exposure to Bitcoin (BTC) and Ethereum (ETH) and was initially set for a decision by November 22, 2024.
The SEC's extension, allowed under Section 19(b)(2) of the Securities Exchange Act of 1934, grants the agency additional time to evaluate the proposed rule change. If approved, the ETF would trade on the Cboe BZX Exchange under the ticker EZPZ.
Franklin Templeton's application, filed on August 17, 2024, comes amid a wave of interest in crypto index ETFs, with other firms like Hashdex also pursuing similar products. The approval of such ETFs is anticipated to significantly influence capital flows into digital asset markets, echoing the earlier approvals for Bitcoin and Ethereum ETFs this year.
In related news, options trading for spot Bitcoin ETFs, including BlackRock's IBIT, Bitwise's BITB, and Grayscale's GBTC, has recently launched, with IBIT options achieving nearly $2 billion in trading volume on its first day.