As a seasoned researcher with over two decades of experience in financial markets and technology, I find the ongoing saga surrounding the approval of the Franklin Templeton Crypto Index ETF to be both intriguing and perplexing. While I’ve witnessed the rapid evolution of digital assets and their increasing integration into traditional finance, the slow-paced regulatory approach towards crypto index ETFs seems almost comical – like a turtle trying to outrun a cheetah!
The U.S. Securities and Exchange Commission (SEC) has postponed its decision on whether to endorse the Franklin Templeton Cryptocurrency Index ETF until the beginning of 2025.
On November 20th, the regulatory body stated that they had not received any feedback following their publication of a proposed rule modification to introduce a cryptocurrency index ETF on the Federal Register on October 8, 2024. In this letter, the officials from the SEC detailed this information.
“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.”
The SEC stated that, based on this, they will decide by January 6, 2025, whether to accept, reject, or initiate further investigation into the proposed rule change, in accordance with Section 19(b)(2) of the Act.
Industry waits for long-anticipated crypto index ETFs
In August, Franklin Templeton submitted an application to the Securities and Exchange Commission (SEC) for a cryptocurrency index exchange-traded fund (ETF). At that point, Katalin Tischhauser, who is the head of research at Sygnum crypto bank, stated to CryptoMoon that crypto index ETFs represent “The natural progression” in the digital asset market.
Tischhauser pointed out that indexes offer investors a way to profit from market growth without needing to select individual successful companies and risk costly, time-consuming errors in the process. This convenience is why stock indexes like the S&P 500 have gained such widespread appeal, according to his research.
It’s worth noting that Franklin Templeton isn’t alone in considering the launch of a cryptocurrency index ETF within the U.S. In fact, back in October, the New York Stock Exchange expressed a desire to list Grayscale’s crypto index ETF and has been seeking approval from U.S. regulators for this purpose, hoping to make it available for trading.
As of late, I’ve noticed a development that caught my attention. In the month of November, U.S. regulatory bodies signaled potential plans to list the Grayscale ETF on a formal exchange.
Approving the Grayscale crypto index ETF will be a first-of-its-kind event in the U.S., opening up fresh investments into digital asset markets, much like the capital infusions from the Bitcoin (BTC) and Ether (ETH) ETFs that received approval earlier in 2024.
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2024-11-21 01:26