Franklin Templeton, a world-renowned asset management company, recently submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC), planning to launch an ETF called "Franklin Crypto Index ETF". The fund aims to provide investors with performance positions in Bitcoin (BTC) and Ethereum (ETH), which is also an important step for traditional financial institutions to further expand into the digital asset market.

Crypto Index ETF: In addition to Bitcoin and Ethereum, more may be added

According to documents submitted on August 16, Franklin Templeton’s proposed “Franklin Crypto Index ETF” will track the CF Institutional Digital Asset Index (CF Institutional Digital Asset Index), which currently only covers Bitcoin and Ethereum. However, the document mentioned that the fund may include more cryptocurrencies in the future based on regulatory developments and market conditions. The ETF is designed to provide investors with exposure to the price volatility of crypto assets through regulated financial products.

ETF Partners: Coinbase and Mellon Bank

In the operation of this ETF, Coinbase Custody Trust Company will serve as the custodian of digital assets, while Bank of New York Mellon will be responsible for managing cash assets and administrative affairs. If the ETF is approved, it will be listed on the Cboe BZX exchange under the trading symbol "EZPZ." Additionally, Cboe Exchange is currently seeking regulatory approval to allow the use of digital assets for the physical creation and redemption of ETF shares.

The crypto index ETF market is highly competitive

Franklin Templeton’s filing comes amid growing demand for diversified products and a rush by asset managers to launch crypto ETFs. In June this year, Hashdex also submitted its own ETF application, called the Hashdex Nasdaq Crypto Index US ETF, which also targets Bitcoin and Ethereum. The SEC has extended its review period for the application and is expected to make a decision on September 30.

At the same time, other asset managers such as Grayscale have also hinted that they are preparing to launch similar crypto ETFs, and VanEck has applied to launch a spot ETF focused on Solana. These actions demonstrate the growing interest of traditional financial institutions in the digital asset market, and despite the recent volatility in cryptocurrency prices, the market is gradually realizing the potential of these assets in diversified investment portfolios.

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