Franklin Templeton files Bitcoin and Ethereum ETF with possibility of including other cryptos
- Franklin Templeton has filed a Form S-1 with the SEC to create an ETF combining Bitcoin and Ethereum, branded under the ticker EZPZ.
- The Franklin Crypto Index ETF may include other cryptocurrencies in the future, depending on regulatory approvals.
- The filing comes amid competition, particularly with Hashdex, which also offers a similar ETF, but whose decision by the SEC has been delayed until September 30, 2024.
Investing in digital assets continues to grow in popularity, and major financial institutions do not want to be left behind. With this in mind, Franklin Templetona renowned investment firm, recently filed a Form S-1 with the SEC for the creation of a ETF combining Bitcoin and Ethereum.
This fund, which would be listed under the ticker EZPZmarks a significant milestone for the company in the digital asset sector, with the potential to add many other cryptocurrencies.
A new index fund for crypto
THE Franklin Crypto Index ETFas proposed, would be structured to hold both Bitcoin and Ethereum, the two largest cryptocurrencies by market capitalization. The weight of each asset in the fund would be determined based on their respective capitalizations, although the exact ratio has yet to be specified. This structure would allow investors to gain diversified exposure to the two leading digital assets, while leveraging market capitalization to adjust the fund’s composition.
Flexibility and regulatory evolution
One of the notable aspects of the deposit of Franklin Templeton is the inclusion of a clause allowing the future addition of other cryptocurrencies to the ETF portfolio, subject to regulatory approval. This suggests that the firm anticipates cypto expansion beyond BTC and ETH as other cryptocurrencies gain recognition and regulation.
Coinbase has once again been chosen as a custodian for crypto assets, with the exchange maintaining its leading position in the cryptocurrency ETF space in the United States.
A competitive context: the race for combined ETFs
The deposit of Franklin Templeton intervenes in a context of increased competition, particularly with Hashdexwho recently submitted his own request to create an ETF combining bitcoin and ether. Hashdex was among the first to offer such a product, marking the beginning of a new trend in the crypto ETF industry.
However, the SEC Delays Decision on Hashdex Proposalpostponing any action until September 30, 2024.
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