Franklin Templeton's Groundbreaking Move: A Dual Bitcoin and Ethereum Index ETF in the Works!

Franklin Templeton, a multi-trillion dollar asset management firm, has filed for a new exchange-traded fund (ETF) that would provide exposure to both Bitcoin and Ethereum.

A New Index ETF On The Horizon

The filing, submitted to the U.S. Securities and Exchange Commission (SEC), aims to offer investors a single product that tracks the performance of the two largest cryptocurrencies by market capitalization. This proposed ETF would specifically target Bitcoin and Ethereum, allowing investors to benefit from the movements of these leading cryptocurrencies.

If approved, the Franklin Templeton Bitcoin and Ethereum Crypto Index ETF will be traded on the Chicago Board Options Exchange (CBOE).

Bank of New York Mellon, one of the largest custodians in the U.S., will handle the fund’s cash and cash equivalents, while Coinbase will act as the custodian for the Bitcoin and Ethereum tokens within the fund. The fund will be sold in large increments, specifically in blocks of 50,000 shares. The product's Net Asset Value (NAV) will determine the share price, and it will be benchmarked against the CF Institutional Digital Asset Index, which tracks market performance for both cryptocurrencies.

Expanding Franklin Templeton’s Crypto Reach

This filing marks a potential expansion of Franklin Templeton's involvement in the cryptocurrency space. The asset manager already provides clients with exposure to spot Bitcoin and Ethereum ETFs, highlighting its ongoing interest in broadening its crypto-based offerings. Interestingly, this ETF filing comes shortly after Franklin Templeton announced a collaboration with the Aptos Foundation to launch its on-chain U.S. Government Money Market Funds (FOBXX). This product allows investors to access FOBXX through the purchase of the BENJI token, showcasing the firm's diversified approach to integrating blockchain technology into traditional finance products.

BNY Mellon’s Role In The ETF

Bank of New York Mellon is poised to play a significant role in this potential ETF, as the institution will receive its first ETF custody duties following a non-objection letter from the SEC. This regulatory clearance allows BNY Mellon to hold digital assets, with an initial focus on Bitcoin and Ethereum ETFs. While this exemption was granted with certain conditions, SEC Chairman Gary Gensler has indicated that BNY Mellon could expand its digital asset custody services if it adheres to specific 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.