The U.S. Securities and Exchange Commission (SEC) has again delayed its decision on Franklin Templeton’s proposed Crypto Index ETF, setting a new deadline for Jan. 6, 2025. This ETF, designed to combine Bitcoin and Ethereum in a single investment product, has garnered significant attention since its initial filing in August 2024. The fund would trade on the Cboe BZX Exchange under the ticker EZPZ, with Coinbase Custody Trust Company LLC acting as the custodian for its digital assets.

Franklin Templeton’s ETF proposal is unique in its approach, offering diversified exposure to two leading cryptocurrencies. This structure appeals to investors who prefer avoiding the complexities and risks of direct cryptocurrency investments. Despite the lack of opposition during the public comment period, the SEC has extended its review, reflecting its ongoing cautious stance toward crypto-related financial products.

Meanwhile, Franklin Templeton is not the only firm vying for an ETF approval. Bitwise has also submitted a proposal to convert its $1.3 billion crypto index fund into a publicly traded ETF. With 75% of its holdings in Bitcoin and 16% in Ethereum, the Bitwise fund emphasizes the dominance of these two cryptocurrencies in the market. Industry experts believe that approval of these ETFs could pave the way for broader institutional adoption, similar to how traditional index funds reshaped stock market investment.

Franklin Templeton has continued to expand its blockchain presence. In 2024, the firm integrated its Benji tokenization platform with Ethereum, adding it to a growing list of supported blockchains including Aptos, Avalanche, Arbitrum and Base. These developments underline the firm’s commitment to leveraging blockchain technology for financial innovation.

The broader crypto market remains optimistic about the potential approval of these ETFs. Total market capitalization has been steadily increasing, driven by growing investor interest and technological advancements. Analysts suggest that these funds could act as a bridge between traditional finance and the crypto sector, enabling easier access to digital assets for a wider range of investors.

The SEC’s delay keeps the industry on edge as it awaits regulatory clarity. With the new deadline falling in early 2025, all eyes will be on the Commission’s decision. Approval of Franklin Templeton’s ETF could mark a pivotal moment, setting a precedent for future crypto investment products and further integrating digital assets into mainstream finance.