- Details of Franklin Crypto Index ETF
- Institutional Interest in Crypto ETFs
- Conclusion
Franklin Templeton has filed to launch a new cryptocurrency ETF named Franklin Crypto Index ETF, which will track Bitcoin and Ethereum.
Details of Franklin Crypto Index ETF
The ETF will be named Franklin Crypto Index ETF and offer investors a broadly diversified cryptocurrency portfolio by tracking the performance of the CF Benchmarks Digital Asset Index, which includes Bitcoin and Ethereum. The fund will attempt to track the index by investing in these digital assets in proportions comparable to the index weights. However, it will be free to add more cryptocurrencies as the market matures and regulatory frameworks evolve.
The fund’s digital assets will be held by Coinbase Custody Trust Company, and the Bank of New York Mellon will handle cash management and administrative duties. Franklin Crypto Index ETF will trade on the Cboe BZX Exchange under the ticker symbol 'EZPZ'. It's noteworthy that Cboe hopes for approval to facilitate in-kind creation and redemption of ETF shares in digital assets, likely to smooth the trading process.
Institutional Interest in Crypto ETFs
The move underscores the growing institutional interest in cryptocurrency investment products. Franklin Crypto Index ETF will be entering a competitive market pitted against funds like the Hashdex Nasdaq Crypto Index ETF, which became the first crypto index ETF to seek regulatory clearance.
Other asset managers such as Grayscale and VanEck are also preparing to launch similar products, signaling a broader trend towards the integration of digital assets into diversified investment portfolios.
Conclusion
Franklin Templeton’s application for a new cryptocurrency ETF highlights the growing interest in digital assets and their place in investment portfolios. The Franklin Crypto Index ETF aims to give investors access to major cryptocurrencies in a managed fund.
The launch of Franklin Crypto Index ETF could be a significant event for the cryptocurrency market and increase institutional investor participation in this sector.
