On August 16, 2024, Franklin Templeton filed
an S-1 form with the U.S. Securities and Exchange Commission (SEC) for a new
exchange-traded fund (ETF) called the Franklin Crypto Index ETF.
This ETF aims to track the performance
of Bitcoin (BTC) and Ethereum (ETH), providing investors with exposure to these
leading cryptocurrencies.
The proposed ETF will mirror the CF
Institutional Digital Asset Index, which currently includes only BTC and ETH,
but may expand to include additional cryptocurrencies in the future.
The index fund will hold bitcoin and
ether in an unspecified ratio. Currently market cap of Bitcoin is 56.93% and
market cap of Ethereum is 15.50%.
So, this fund is presumably track 72%
of overall cryptocurrency market cap.
Coinbase Custody Trust Company is set
to serve as the custodian for the digital assets, while Bank of New York Mellon
will handle cash holdings and administrative duties.
If approved, the ETF will be listed on
the Cboe BZX Exchange under the ticker symbol “EZPZ“.
This move by Franklin Templeton is part
of a growing trend of financial institutions seeking to offer regulated
financial products that provide exposure to digital assets.
