Key takeaways
- Franklin Templeton’s new crypto index will track Ether and Bitcoin.
- The index may give rise to future ETFs and investment products.
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Global investment firm Franklin Templeton has filed a Form S-1 registration with the U.S. Securities and Exchange Commission (SEC) for a crypto index ETF that will track the performance of Bitcoin and Ethereum.
According to a filing dated Aug. 16, the fund, called the “Franklin Crypto Index ETF,” aims to offer investors a diversified entry into the world of digital assets while benefiting from Franklin’s renowned institutional backing.
The ETF will focus only on the two largest digital assets, as stated in the filing. However, if other digital assets are added to the index in the future, Franklin will adjust the fund structure accordingly, subject to regulatory approval.
Coinbase Custody Trust Company has been appointed as the custodian of the fund’s digital assets. Bank of New York Mellon will manage liquidity and serve as the fund’s administrator and transfer agent.
If approved, the fund would be listed on the Cboe BZX exchange and trade under the ticker symbol “EZPZ.” The filing said Cboe is currently awaiting regulatory approval to allow the creation and in-kind redemption of shares using digital assets.
Franklin Templeton isn’t the only company seeking approval to offer a crypto index ETF for Bitcoin and Ethereum. In June, Hashdex filed an application to establish the Hashdex Nasdaq Crypto Index US ETF, which aims to be the first dual Bitcoin and Ethereum ETF in the United States.
Earlier this month, the SEC announced that it would extend its decision deadline on Hashdex’s proposed ETF until September 30.
Growing institutional appetite
Franklin Templeton’s latest move comes at a time when institutional interest in digital assets, particularly Bitcoin and Ethereum, is on the rise.
Although Bitcoin’s price has struggled recently, the growing adoption of crypto ETFs reflects a broader trend among traditional financial institutions recognizing the value of digital assets as part of a diversified portfolio.
Franklin Templeton is actively involved in the cryptocurrency sector. The company launched its Bitcoin spot ETF in the United States on January 10, alongside other major asset managers.
Following the approval of its Ethereum ETF in May, Franklin Templeton has revealed plans to introduce a new crypto fund investing in tokens other than Bitcoin and Ether, targeting a broader range of digital assets.
This story is currently under development and will be updated.
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