Franklin Templeton Seeks SEC Approval for Bitcoin-Ethereum ETF

Franklin Templeton, a leading asset management company, is proactively seeking approval from the U.S. Securities and Exchange Commission (SEC) for a groundbreaking dual Bitcoin and Ethereum Index ETF. In a strategic move to broaden investment opportunities, this filing aims to offer a single product that mirrors the performance of these top cryptocurrencies.

Referencing the recent SEC application filed on Wednesday, Franklin Templeton unveils plans to offer investors access to a product that tracks Bitcoin and Ethereum, two of the most prominent cryptocurrencies by market capitalization, consolidating investment into these digital assets.

Anticipating a Revolutionary Index ETF

On October 2, Franklin Templeton submitted a proposal for a new index fund designed to encompass both Bitcoin and Ethereum. Typically, an index fund replicates the performance of a set of assets—be it stocks, bonds, or cryptocurrencies—thereby allowing investors to gain exposure without owning these assets outright. This pioneering ETF targets Bitcoin and Ethereum, providing potential returns from their market dynamics.

Should it receive approval, the innovative Franklin Templeton Bitcoin and Ethereum Crypto Index ETF is set to trade on the Chicago Board Options Exchange CBOE.

Bank of New York Mellon BK, a distinguished custodian in the U.S., will manage the fund’s cash and analogous assets, with Coinbase COIN safeguarding the Bitcoin and Ethereum tokens within the fund.

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Significantly, the offering mandates significant purchase blocks, calculated at 50,000 shares each. The share price will be determined by the fund’s Net Asset Value (NAV), with the index fund aligned to the CF Institutional Digital Asset Index, a benchmark of Bitcoin and Ethereum market performance.

Enhancing Franklin Templeton’s Cryptocurrency Presence

This recent filing underscores Franklin Templeton’s dedication to expanding its footprint in the digital currency market. Already, they offer spot Bitcoin and Ethereum ETFs to clients, demonstrating their commitment to diversifying crypto-focused investment solutions.

Notably, the ETF proposal followed closely on the heels of Franklin Templeton’s announcement regarding a joint initiative with the Aptos Foundation, spotlighting the development of on-chain U.S. Government Money Market Funds (FOBXX). These ventures, coupled with the BENJI token, illuminate their holistic strategy of merging blockchain with traditional finance.

BNY Mellon’s Integral Involvement in the ETF

The Bank of New York Mellon is poised to play a central role in the anticipated ETF, stepping into new ETF custody responsibilities granted by a non-objection letter from the SEC. This regulatory approval empowers BNY Mellon to manage digital assets, with an initial focus on Bitcoin and Ethereum ETFs.

While specific conditions accompany this provision, SEC Chairman Gary Gensler remarked that BNY Mellon may expand its digital custody services contingent on compliance with set guidelines.

For those captivated by the convergence of traditional finance and digital innovation, Benzinga’s Future of Digital Assets event on November 19 presents an excellent opportunity to engage with thought leaders and experts.

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