Franklin Templeton proposes Bitcoin & Ethereum index ETF.
BNY Mellon will act as the fund administrator, Coinbase Custody will hold the assets, and the ETF will not participate in staking.
SEC's stance is shifting towards crypto ETFs, with Franklin Templeton's proposal and Hashdex's amended filing being promising signs.
Franklin Templeton, a major asset manager with over a trillion dollars under management, has filed a proposal with the U.S. Securities and Exchange Commission (SEC) to launch a Franklin Templeton Bitcoin & Ethereum Crypto Index ETF. This fund will let investors gain exposure to both Bitcoin and Ethereum through a single product. The ETF will hold Bitcoin, Ethereum, cash, and cash equivalentsโshort-term securities that mature in less than three months.
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Easy Access to Top Cryptocurrencies
This ETF gives investors the chance to invest in both Bitcoin and Ethereum without owning them directly. BNY Mellon, one of the largest custody banks in the world, will act as the fundโs administrator. They will manage the fundโs operations and make sure it meets all regulatory standards, adding another layer of security.
Franklin Templeton has chosen Coinbase Custody to securely hold the Bitcoin and Ethereum for the ETF. This shows the companyโs focus on protecting the digital assets in the fund and keeping investor funds safe.
The ETF will be available in blocks of 50,000 shares, with the price based on the net asset value (NAV) of the Bitcoin and Ethereum it holds. The fund will not engage in staking or other income-generating activities with the assets. This filing is part of Franklin Templetonโs larger plan to expand into blockchain technology.ย
SECโs Changing View on Crypto ETFs
While many Bitcoin ETFs have been proposed in the U.S., the SEC has historically rejected many of them, citing concerns about market volatility, security, and manipulation risks. However, recent developments show that the SECโs stance may be shifting.
With improved security, better custody solutions, and growing institutional interest, the SEC has become more open to crypto investment products. The Franklin Templeton proposal includes oversight agreements with regulated futures markets like CME Bitcoin and Ether Futures, which may help ease the SECโs concerns.
More Players Enter the Market
With big players like Franklin Templeton joining the crypto ETF space, the future looks promising. Another asset manager, Hashdex, has also filed an amended registration for its Hashdex Nasdaq Crypto Index US ETF. This fund will initially hold Bitcoin and Ether but could expand to include other cryptocurrencies, making it a broader investment option over time.
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