If approved, the fund will be traded under the ticker "EZPZ."
Key Takeaways
- Franklin Templeton's new crypto index will track Ether and Bitcoin.
- The index may lead to future ETFs and investment products.
Global investment firm Franklin Templeton has submitted an S-1 registration form to the US Securities and Exchange Commission (SEC) for a crypto index ETF that will track the performance of Bitcoin and Ethereum.
According to a filing dated August 16, the fund, called the “Franklin Crypto Index ETF,” aims to offer investors a diversified entry into the world of digital assets while benefiting from Franklin’s renowned institutional backing.
The ETF will focus solely on the two largest digital assets, as noted in the filing. However, if other digital assets are added to the index in the future, Franklin will adjust the fund’s structure accordingly, subject to regulatory approval.
Coinbase Custody Trust Company has been designated as the custodian of the fund’s digital assets. Bank of New York Mellon will handle cash holdings and serve as the fund’s administrator and transfer agent.
If approved, the fund will be listed on the Cboe BZX Exchange and traded under the ticker symbol “EZPZ.” The filing noted that the Cboe is currently awaiting regulatory approval to allow for in-kind creation and redemption of shares using digital assets.
Franklin Templeton is not the only firm that seeks approval to offer a crypto index ETF for Bitcoin and Ethereum. In June, Hashdex applied to establish the Hashdex Nasdaq Crypto Index US ETF, which aims to be the first dual Bitcoin and Ethereum ETF in the US.
Earlier this month, the SEC announced that it would extend its decision timeline for Hashdex’s proposed ETF to September 30.
Growing institutional appetite
Franklin Templeton’s latest move comes at a time when institutional interest in digital assets, particularly Bitcoin and Ethereum, is on the rise.
Although Bitcoin’s price has struggled recently, the growing adoption of crypto ETFs reflects a broader trend of traditional financial institutions recognizing the value of digital assets as part of a diversified portfolio.
Franklin Templeton has been actively involved in the crypto space. The firm debuted its spot Bitcoin ETF in the US on January 10, alongside other major asset managers.
Following its Ethereum ETF approval in May, Franklin Templeton revealed plans to introduce a new crypto fund investing in tokens other than Bitcoin and Ether, targeting a broader range of digital assets.
This story is developing and will be updated.