The U.S. Securities and Exchange Commission (SEC) has postponed its decision on Franklin Templeton's Bitcoin and Ethereum index ETF until January 6, 2025, as announced in a filing on November 20, 2024.

This delay reflects the SEC's cautious approach to evaluating compliance with cryptocurrency regulations, particularly since no public comments were received regarding the proposed rule change.

The proposed rule change was first submitted on September 19, 2024, and opened for public comment on October 8, 2024, with the original review period set to conclude on November 22, 2024.

Franklin Templeton's application for the crypto index ETF, submitted in August 2024, underscores the increasing interest in such financial products among asset managers.

There is notable enthusiasm for crypto index ETFs, with the New York Stock Exchange actively seeking to list Grayscale's crypto index ETF, which is currently under regulatory consideration.

Bitwise has also filed to convert its 10 Crypto Index Fund into an ETF, with Bitcoin and Ethereum making up 91% of its $1.3 billion portfolio, indicating a trend towards diversified crypto investments.

The recent launch of Bitcoin ETFs in the U.S. has been hailed as the most successful ETF launch in history, reflecting a growing acceptance of crypto investment products.

BlackRock's IBIT options saw nearly $2 billion in trading volume on their first day, demonstrating strong market interest in crypto-related financial instruments.

Despite the SEC's cautious stance, the approval of Grayscale's ETF could mark a significant milestone, potentially attracting new capital flows into digital asset markets.

Market optimism has surged following Donald Trump's recent electoral victory, with many anticipating a more favorable regulatory environment for cryptocurrencies.

Other asset managers in the U.S. are also pursuing approvals for ETFs that track various cryptocurrencies, including XRP, Solana, Hedera, and Litecoin.

In addition to the ETF initiatives, Franklin Templeton is exploring a private altcoin-focused crypto fund aimed at institutional investors, which may offer staking rewards.