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- The Franklin Crypto Index ETF will follow the CF Institutional Digital Asset Index’s performance.
- The first crypto index ETF to apply for approval was the Hashdex Nasdaq Crypto Index ETF.
According to a filing made on August 16 with the U.S SEC, asset manager Franklin Templeton is planning to introduce a new exchange-traded fund (ETF) that would serve as a comprehensive cryptocurrency portfolio. According to the paperwork, the Franklin Crypto Index ETF will follow the CF Institutional Digital Asset Index’s. Which now only includes BTC and ETH performance.
Furthermore, the ETF may hold more varieties of cryptocurrencies in the future. But according to the filing, it will invest in digital assets in proportion to their weights in the underlying index in order to reach its investment goal.
Next Natural Move
Moreover, with the introduction of Bitcoin ETF in January and Ethereum ETF in July, crypto index ETFs are quickly becoming the focus of crypto ETF issuers. Also, Franklin Crypto Index ETF is one of the first to join this trend. The first crypto index ETF to apply for regulatory approval was the Hashdex Nasdaq Crypto Index ETF. And now the new index ETF by Franklin will compete with it.
Since indices are efficient for investors, the next natural step is index exchange-traded funds (ETFs), such as the S&P 500 ETF. When it comes to cryptocurrency, this will remain unchanged, according to Katalin Tischhauser, head of investment research at Sygnum.
Since the Securities and Exchange Commission (SEC) has only approved BTC and ETH to be included in ETFs so far. Tischhauser said that crypto index ETFs are now confined to just two digital currencies.
With $25 billion in AUM, Grayscale is the biggest crypto fund issuer. They have hinted that they would be interested in getting in on crypto index ETFs.