Global asset manager Franklin Templeton has officially filed for a Bitcoin and Ethereum Index ETF. Indeed, the firm submitted a proposal for the fund to the US Securities and Exchange Commission (SEC). The fund will reportedly hold both BTC and ETH indirectly, offering exposure to the top two cryptocurrencies.
The fund will feature no staking and has custody provided by BNY Melon and Coinbase. Ultimately, it appears as though potential approval will rely on fraud prevention and the futures market. For now, Franklin Templeton is awaiting updates from the SEC on its submitted proposal.
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Franklin Templeton Submits Proposal for Bitcoin and Ethereum Index ETF
Throughout 2024, ETFs have been a major talking point within eh crypto sector. With the first crypto-based ETF approved in January, it wasn’t long before both Bitcoin and Ethereum featured their very own exchange-traded funds in the country. Now, the market is awaiting the progression of those investment products.
The next could be on its way. Indeed, asset manager Franklin Templeton has officially submitted a filing with the SEC for its own Bitcoin and Ethereum Index ETF. Moreover, the proposal notes that it would be the first of its kind. Specifically, it would be the first fund to hold both BTC and ETH, giving it a notable advantage within the field.
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According to the filing, the approved fund, named the Franklin Crypto Index ETF, would be issued in blocks of 50,000. Additionally, its value would be connected to the net asset value (NAV) of the two cryptos. It is also important to note that there will be no staking engagement or income generation within the cryptocurrencies.
The proposed fund would be an interesting next step for cryptocurrencies in the ETF space. With both Bitcoin and Ethereum being approved, there is no reason to believe why the Franklin Templeton Index fund would not be poised to get a green light from the SEC. The only question right now remains the timetable for that approval to be granted.
