Multitrillion-dollar asset management firm Franklin Templeton has filed for a new exchange-traded fund (ETF) that will offer exposure to both Bitcoin and Ethereum.
The company aims to offer investors a single product that tracks the performance of the two largest cryptocurrencies by market capitalization, according to a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday.
New index ETF on the horizon
The October 2nd filing reveals Franklin Templeton’s intention to launch an index fund that includes both Bitcoin and Ethereum. Index funds typically track the performance of a collection of assets, such as stocks, bonds, and cryptocurrencies, allowing investors to gain exposure to these assets without directly owning them.
In this case, the proposed ETF specifically targets Bitcoin and Ethereum, allowing investors to benefit from movements in these major cryptocurrencies.
If approved, the new Franklin Templeton Bitcoin and Ethereum Crypto Index ETF will trade on the Chicago Options Exchange CBOE.
Bank of New York Mellon BK, one of the largest custodians in the United States, will handle the fund’s cash and cash equivalents, and Coinbase COIN will be the custodian for the Bitcoin and Ethereum tokens within the fund. functions as
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What is notable about this offering is that the Fund will be sold in large units, specifically in units of 50,000 shares.
A product’s net asset value (NAV) is used to determine the stock price. Additionally, this index fund is benchmarked against the CF Institutional Digital Asset Index, which tracks the market performance of both Bitcoin and Ethereum.
Franklin Templeton’s Cryptocurrency Reach Expands
The filing signals the potential for Franklin Templeton’s involvement in the cryptocurrency space to expand.
The asset manager already offers clients exposure to Bitcoin and Ethereum spot ETFs and has shown continued interest in expanding its crypto-based offerings.
Interestingly, this ETF filing comes just hours after Franklin Templeton announced that he is partnering with the Aptos Foundation to launch an on-chain U.S. government money market fund (FOBXX).
The product provides investors with access to FOBXX through the purchase of BENJI BENJI/USD tokens, demonstrating the company’s diversified approach to integrating blockchain technology into traditional financial products.
BNY Mellon’s role in ETFs
Bank of New York Mellon is poised to play a key role in this potential ETF, as it will be the first to receive an ETF custodian mandate following a letter of no objection from the SEC.
The regulatory approval will allow BNY Mellon to hold digital assets, initially focused on Bitcoin and Ethereum ETFs.
The exemption was granted with certain conditions, but SEC Chairman Gary Gensler indicated that BNY Mellon could expand its digital asset custody services if it complies with certain guidelines.
For those interested in the intersection of traditional finance and digital assets, Benzinga’s Future of Digital Assets event on November 19 will provide further insights and discussions with industry experts.
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