Franklin Templeton, a well-known asset management, is seeking SEC approval to launch a new exchange-traded fund (ETF) based on Bitcoin and Ether spot prices. The proposed Franklin Crypto Index ETF will provide investors with a simple and effective approach to obtaining exposure to the top two cryptocurrencies based on market capitalization.
According to the filing, the ETF will contain 86.31% Bitcoin and 13.69% Ether, with the fund being rebalanced quarterly in March, June, September, and December. The ETF will initially focus primarily on these two cryptocurrencies, but Franklin Templeton has stated that it may include additional digital assets in the future, subject to regulatory permission.
This filing follows Bitwise’s same action, which applied for a Bitcoin and Ether ETF two weeks ago. The Franklin Crypto Index ETF would be listed on the Cboe BZX Exchange, giving investors a convenient way to invest in these digital assets. However, the company stated that any new cryptocurrency will require SEC and exchange approval.
The ETF’s launch comes at a time when interest in cryptocurrency-based ETFs is increasing. The SEC has been considering many applications for comparable products, indicating a growing desire for regulated digital asset investing opportunities. While the registration has received attention, it remains uncertain if the fund will include other cryptocurrencies in the near future.
With the cryptocurrency market evolving, Franklin Templeton’s decision represents a larger trend of traditional finance embracing cryptocurrency investments, creating new options for both seasoned investors and newbies to the digital asset field.
