Key Points
- Franklin Templeton’s new cryptocurrency index will track Ether and Bitcoin.
- This index could lead to future ETFs and investment products.
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Global investment firm Franklin Templeton has filed an S-1 registration form with the U.S. Securities and Exchange Commission (SEC) for a cryptocurrency index ETF that tracks the performance of Bitcoin and Ethereum.
According to a filing dated August 16, the fund, dubbed the “Franklin Crypto Index ETF,” aims to provide investors with a diversified entry point 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 outlined 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 cash holdings and act 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 notes that Cboe is currently awaiting regulatory approval to allow the digital asset to be used to create and redeem shares for real money.
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 is It aims to be the first ETF in the U.S. to invest in both Bitcoin and Ethereum simultaneously.
Earlier this month, the SEC announced it was extending the decision timeline on the Hashdex proposed ETF to September 30.
Increasing needs of institutions
Franklin Templeton’s latest move comes at a time when institutional investors are particularly interested in digital assets such as Bitcoin and Ethereum.
While the Bitcoin price has struggled recently, the growing adoption of cryptocurrency ETFs reflects an overall trend in which traditional financial institutions are recognizing the value of digital assets as part of a diversified portfolio.
Franklin Templeton has been actively involved in the cryptocurrency space. The firm debuted a spot Bitcoin ETF in the United States on January 10, along with other major asset managers.
Franklin Templeton said in May it plans to launch a new cryptocurrency fund that invests in tokens other than bitcoin and ether, targeting a wider range of digital assets, following the approval of an Ethereum ETF.
This story is currently in progress and will be updated.
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