Franklin Templeton Files for Bitcoin & Ethereum Crypto Index ETF

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 equivalents—short-term securities that mature in less than three months.

Are we beginning a new era in crypto investing?

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 fund’s administrator. They will manage the fund’s 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 company’s 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 Templeton’s larger plan to expand into blockchain technology. 

SEC’s 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 SEC’s 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 SEC’s 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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