Franklin Templeton Proposes Bitcoin & Ethereum Index ETF to SEC

Overview of the Franklin Templeton ETF Proposal

Franklin Templeton’s Latest ETF Proposal

In a recent development, Franklin Templeton has submitted a proposal to the SEC for the listing and trading of the Franklin Templeton Bitcoin & Ethereum Crypto Index ETF. This innovative ETF aims to provide investors with exposure to both Bitcoin and Ethereum within a single index fund.

Investment Strategy of the ETF

The Franklin Crypto Index ETF will offer investors the opportunity to invest in Bitcoin and Ethereum without directly owning these volatile assets. The fund will hold Bitcoin, Ethereum, cash, and short-term instruments with a maturity of less than three months.

Key Features of the Franklin Crypto Index ETF

Custodian and Transfer Agent

BNY Mellon will serve as the custodian and transfer agent for the Franklin Crypto Index ETF, ensuring the secure management of the fund’s assets. Coinbase Custody will be responsible for managing the digital assets held by the fund.

Index Composition and Benchmark

The ETF aims to mirror the performance of an index composed of Bitcoin and Ether, based on the CF Institutional Digital Asset Index. This benchmark is designed to track the largest digital assets in alignment with the prevailing capital markets.

Unique Offering in the Digital Currency ETF Space

This ETF will be the first of its kind to combine both Bitcoin and Ether in a single fund, making it a distinctive asset in the digital currency ETF landscape.

Regulatory Compliance and Investor Protection

SEC Approval Requirements

The SEC typically approves crypto-related ETFs when robust measures are in place to prevent fraud and manipulation. In this case, the proposal emphasizes oversight collaborations with regulated futures markets such as CME Bitcoin and Ether Futures to ensure the secure and transparent trading of the underlying assets.