Franklin Templeton has filed a proposal with the US SEC to launch a Bitcoin and Ethereum index ETF.
If approved, this ETF would be the first to hold both BTC and ETH in a single fund.
Franklin Templeton, a trillion-dollar asset management firm, submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a Bitcoin and Ethereum index exchange-traded fund (ETF). This fund, known as the Franklin Templeton Bitcoin & Ethereum Crypto Index ETF, aims to provide investors with a combined exposure to both cryptocurrencies, which are currently the largest in the market.
According to the Oct. 2 filing, the ETF shares will be issued in blocks of 50,000, with their value linked to the net asset value of the cryptocurrencies held within the fund. Notably, the fund won’t participate in staking or any activities that generate income from these digital assets. If the SEC approves this application, it will be a significant milestone, as this ETF would be the first to hold both Bitcoin (BTC) and Ethereum (ETH) together.
Overview of the Franklin Templeton ETF Structure and Strategy
This index was created to offer investors indirect exposure to Bitcoin and Ethereum. Further, it aims to reduce the typical price fluctuations associated with these cryptocurrencies. The fund will comprise Bitcoin, Ethereum, cash, and short-term financial instruments, with assets structured to mature in less than three months. It will track the CF Institutional Digital Asset Index, which reflects the performance of the largest digital assets.
BNY Mellon, a global financial services company, will serve as the custodian and transfer agent for the ETF. The Coinbase Custody will be responsible for managing the digital assets. The SEC’s decision on this proposal will hinge on the effectiveness of anti-fraud measures concerning regulated futures markets.
With this new offering, Franklin Templeton is positioning itself to tap into the growing interest in cryptocurrency investments, making it an exciting development for investors looking to diversify their portfolios.
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