Key Points
- Franklin Templeton has filed with the SEC to launch a crypto index ETF that tracks Bitcoin and Ethereum prices. The fund could potentially expand to other digital assets in the future.
- The proposed ETF would store assets in Coinbase Custody and be listed on the Cboe BZX Exchange under the ticker “EZPZ.” It aims to provide investors with regulated crypto exposure.
Asset management giant Franklin Templeton is looking to enter the cryptocurrency ETF space, filing an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) on August 16, 2024. The proposed “Franklin Crypto Index ETF” aims to expose investors to major cryptocurrencies’ performance through a regulated financial product.
Anticipated Move
This filing comes as no surprise to some industry observers. In July, Token Times AI reported on the possibility of a new ETF from Franklin Templeton, demonstrating the growing anticipation for established financial institutions to enter the crypto investment space.
Tracking the Crypto Market
According to the filing, the ETF will track the CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum. The fund plans to invest in these digital assets in approximately the same weights as they are represented in the underlying index. However, Franklin Templeton has left the door open for potential expansion, stating that the fund may incorporate additional cryptocurrencies depending on regulatory developments and market conditions.
Key Service Providers and Trading Details
Franklin Templeton has selected established partners for key roles in the ETF’s operations:
- Coinbase Custody Trust Company will serve as the custodian for the fund’s digital assets
- Bank of New York Mellon will manage cash holdings and perform administrative duties
If approved, the ETF will be listed on the Cboe BZX Exchange under the “EZPZ.” Notably, Cboe is also seeking regulatory approval to allow in-kind creation and redemption of ETF shares using digital assets, which could improve the efficiency of the fund’s operations.
Expanding Crypto Investment Options
The Franklin Crypto Index ETF represents another step in the growing trend of traditional finance firms offering cryptocurrency exposure to their clients. By providing a regulated and easily accessible investment vehicle, Franklin Templeton aims to bridge the gap between the crypto market and traditional investors who may be hesitant to purchase and hold digital assets directly.
As the cryptocurrency market continues to mature, the introduction of such products could significantly increase institutional and retail adoption of digital assets. However, the fate of the ETF ultimately rests with the SEC, which has historically been cautious in approving crypto-related investment products.
