Key points
- 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 an S-1 filing shape to the United States Securities and Exchange Commission (SEC) for a crypto index ETF that will track the performance of Bitcoin and Ethereum.
According to a filing dated August 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 solely on the two largest digital assets, as noted 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 custodian of the fund’s digital assets. Bank of New York Mellon will handle the cash holdings and act as administrator and transfer agent for the fund.
If approved, the fund will be listed on Cboe’s BZX exchange and trade under the ticker symbol “EZPZ.” The filing notes that Cboe is currently awaiting regulatory approval to allow the creation and redemption of in-kind shares using digital assets.
Franklin Templeton is not the only firm seeking approval to offer a crypto index ETF for Bitcoin and Ethereum. In June, Hashdex applied to establish the Hashdex Nasdaq Crypto Index US ETF, which It aims to be the first dual Bitcoin and Ethereum ETF in the US.
Earlier this month, the SEC announced it would extend its decision deadline for the proposed Hashdex 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.
While Bitcoin’s price has struggled recently, the growing adoption of cryptocurrency ETFs reflects a broader trend of traditional financial institutions recognizing the value of digital assets as part of a diversified portfolio.
Franklin Templeton has been actively involved in the cryptocurrency space. The firm launched its Bitcoin Spot ETF in the US on January 10, alongside other major asset managers.
Following his Ethereum ETF Approval In May, Franklin Templeton revealed plans to introduce a new crypto fund that invests in tokens other than Bitcoin and Ether, targeting a broader range of digital assets.
This story is developing and will be updated.
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