Franklin Templeton Files for Crypto Index ETF Offering Regulated Bitcoin and Ethereum Exposure

August 17, 2024 at 10:08 AM GST 2 mins read News

Franklin Templeton’s new Crypto Index ETF aims to provide regulated exposure to Bitcoin and Ethereum through a tracked index.
Coinbase Custody Trust Company will manage digital assets for Franklin Templeton’s proposed crypto index ETF, ensuring secure custody.
The ETF, listed under ticker “EZPZ,” may expand beyond Bitcoin and Ethereum, depending on regulatory changes and market conditions.

Franklin Templeton, a prominent investment management firm, has taken another step into the digital asset space. The firm has filed an S-1 application with the U.S. Securities and Exchange Commission (SEC) for a new crypto index exchange-traded fund (ETF).

If approved, the ETF, named the “Franklin Crypto Index ETF,” will provide regulated exposure to Bitcoin and Ethereum. This development signifies growing interest from financial institutions in digital currencies.

Focus on Bitcoin and Ethereum

The proposed Franklin Crypto Index ETF intends to track the CF Institutional Digital Asset Index, which currently includes only Bitcoin and Ethereum. This gives investors a regulated path to invest in the two largest cryptocurrencies by market capitalization. However, the fund could expand to include additional cryptocurrencies as regulatory environments evolve.

Franklin Templeton’s filing also highlights key partnerships for managing digital and cash assets. Coinbase Custody Trust Company will be responsible for the fund’s digital asset custody, while Bank of New York Mellon will oversee cash holdings and administrative tasks.

Regulatory Developments and Listings

The ETF, if granted approval, will be listed on the Cboe BZX Exchange under the ticker symbol “EZPZ.” Notably, Cboe is pursuing approval for in-kind creation and redemption of ETF shares using digital assets. This represents a shift toward integrating traditional financial products with cryptocurrency markets.

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Franklin Templeton’s expansion into digital assets is part of a larger movement within the financial sector. The firm has already launched spot Bitcoin and Ethereum ETFs earlier this year, marking its continued commitment to digital asset offerings. Other asset managers are also moving in a similar direction, with Grayscale and VanEck both preparing to introduce similar products, including a proposed spot Solana ETF from VanEck.

Arbitrum and Broader Digital Asset Strategy

In addition to the crypto index ETF filing, Franklin Templeton recently announced that its Nasdaq-listed OnChain U.S. Government Money Fund, FOBXX, is now available on the Arbitrum network. Arbitrum is an Ethereum layer-2 scaling solution designed to increase transaction speed on the Ethereum network, further highlighting Franklin Templeton’s strategic positioning in blockchain-based technologies.

This push toward digital asset offerings reflects increasing institutional involvement in the crypto space. Despite price fluctuations, the interest from major players like Franklin Templeton underlines the growing role of digital assets in diversified investment portfolios.

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