Franklin Templeton Files for Bitcoin & Ethereum Index ETF with SEC

The SEC has received a proposal to list and trade the Franklin Templeton Bitcoin & Ethereum Crypto Index ETF. Managed by Franklin Templeton, this new ETF aims to provide investors with exposure to both Bitcoin and Ethereum through a combined index fund.

The ETF would enable investors to gain exposure to these two major cryptocurrencies without directly holding the volatile assets. The trust’s assets will consist of Bitcoin, Ethereum, cash, and short-term instruments with maturities of less than three months.

BNY Mellon will serve as the custodian and transfer agent for the fund, while Coinbase Custody will handle the digital assets.

The Franklin Crypto Index ETF is designed to mirror the performance of an index made up of Bitcoin and Ether, based on the CF Institutional Digital Asset Index, which tracks leading digital assets in line with capital markets.

According to the filing, this ETF would be the first to hold both Bitcoin and Ether, distinguishing it as a unique asset in the crypto ETF market.

Shares will be issued in blocks of 50,000, with their value tied to the net asset value (NAV) of the Bitcoin and Ether held by the fund. The ETF will not engage in staking or other income-generating activities from its digital assets.

The SEC tends to approve crypto ETFs when strong fraud prevention and anti-manipulation measures are in place. The proposal includes oversight agreements with regulated futures markets, such as CME Bitcoin and Ether Futures, to ensure secure and transparent trading of the underlying assets.