Franklin Templeton has proposed index ETFs for Bitcoin and Ethereum, combining both assets into one fund.
Hashdex plans to launch a groundbreaking #ETF directly holding #Bitcoin and #Ethereum .
Franklin Templeton Investments, a well-known trillion-dollar asset manager, has filed a proposal with the U. S. Securities and Exchange Commission (SEC) to create an index exchange-traded fund (ETF) for bitcoin [BTC] and ethereum [ETH].
If approved, the initiative would allow global investment firms to combine BTC and ETH into one fund, giving investors a convenient way to access both digital assets. The proposed ETF would include Bitcoin, Ethereum and cash equivalents (short-term securities with a maturity of less than three months), allowing investors to trade these cryptocurrencies without having to own them directly.
The proposal comes at a time when all BTC ETFs recorded outflows of $52.9 million and ETH ETFs recorded inflows of $19.8 million, according to Farside Investors.
However, Franklin Templeton's Bitcoin and Ethereum Cryptocurrency Index ETF will be the first ever fund to combine BTC and ETH into one index product.
According to the announcement, the ETF is designed to simplify the investment process by giving institutional and retail investors easy access to the two largest cryptocurrencies by market capitalization. Commenting on the announcement, an X-user said, "As expected, this move also alleviates the complexity and volatility often associated with cryptocurrency exchanges.
The fund is priced based on the net asset value (NAV) of the underlying bitcoins and Ethereum and is offered in packages of 50,000 shares.
Notably, the ETF will take a simple approach to crypto investing, with no betting or other income-generating activities using digital assets.
The statement notes that:
"CSC Delaware Trust Company, a subsidiary of Corporation Services Company, is the trustee.
the following companies will also be added.
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