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Multi-trillion asset manager Franklin Templeton files for a Bitcoin and Ethereum index exchange-traded fund (ETF) with the US SEC.
Crypto enthusiasts may have a single ETF allowing exposure to both Bitcoin and Ethereum. Per a recent filing, Franklin Templeton has applied with the SEC to launch an index fund that exposes investors to the two largest cryptocurrencies by market cap.
Franklin Templeton Pursue Index ETF for Bitcoin and Ethereum
According to the October 2 filing, the leading asset manager requests a rule change to offer a Bitcoin and Ethereum index. An index fund is a contract that tracks the performance of an asset, either stocks, bonds, or crypto, and gives holders exposure to the asset without directly holding it.
If approved, the Franklin Templeton Bitcoin and Ethereum Crypto Index ETF will trade on the Chicago Board Options Exchange (Cboe). Per the filing, America’s largest custodian, Bank of New York Mellon, will hold and distribute the funds’ cash and cash equivalent, while Coinbase will custody the fund’s Bitcoin and Ether tokens.
Notably, Franklin Templeton will sell the fund in large chunks of 50,000 block shares. The product’s net asset value (NAV) will determine the value per share. It bears mentioning that the index fund will be benchmarked against the CF Institutional Digital Asset Index, which tracks the performance of Bitcoin and Ethereum.
Franklin Templeton Expands Crypto Offering
If approved, the fund will further expand Franklin Templeton’s crypto offerings. Notably, the asset manager already offers clients exposure to Bitcoin and Ethereum spot ETFs.
The filing also came a few hours after the asset manager announced a collaboration with the Aptos Foundation to launch its on-chain US Government Money Market Funds (FOBXX). The funds allow investors exposure to FOBXX by purchasing the BENJI token.
Meanwhile, BNY Mellon will receive its first ETF custody after the US SEC issued the bank a non-objective injunction allowing it to hold digital assets. Notably, the exemption prompted it to hold only Bitcoin and Ethereum ETFs. However, the SEC boss, Gary Gensler, clarified that BNY Mellon could hold any digital asset if it followed certain guidelines.