- Franklin Templeton files S-1 for a broad Bitcoin and Ethereum-focused Crypto Index ETF.
- Proposed ETF may expand beyond BTC and ETH, based on regulatory shifts and market trends.
- Franklin’s strategic ETF move aligns with growing interest in diverse crypto investment options.
Asset manager Franklin Templeton, overseeing $1.6 trillion in assets, expanded its presence in the crypto market by filing an S-1 application with the U.S. Securities and Exchange Commission (SEC). The August 16 filing seeks approval to launch a new Crypto Index Exchange-Traded Fund (ETF) holding Bitcoin and Ethereum.
The Franklin Crypto Index ETF aims to track the performance of Bitcoin and Ethereum, providing investors with diverse exposure to the crypto market. According to the S-1 filing, the ETF will follow the CF Institutional Digital Asset Index, initially concentrating on Bitcoin (BTC) and Ethereum (ETH). The filing also indicates the fund could incorporate additional crypto assets in the future, depending on regulatory changes and market dynamics.
While not a dominant issuer of Bitcoin or Ethereum ETFs, Franklin Templeton has maintained a consistent presence in the market. The company’s BTC ETF, EZBC, has experienced a slight inflow since July 29, while its ETH ETF, EZET, has seen a $35 million inflow during the same period.
The proposed Crypto Index Fund will operate as a weighted offering based on the market capitalization of its components. This approach allows Franklin Templeton to potentially establish a unique niche within the ETF landscape, especially as it explores the possibility of a Solana ETF.
This new ETF stands out as one of the first to offer a combination of crypto assets in a single fund. Similar products, such as the Hashdex Nasdaq Crypto Index ETF, are also awaiting approval, with Index-based ETFs gaining popularity for simplifying diversified investment strategies.
Currently, U.S. regulations limit these ETFs to Bitcoin and Ethereum, the only digital assets sanctioned by the SEC. However, other major players in the market, including Grayscale, are also exploring the launch of index and multi-asset ETFs.
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