Franklin Templeton Crypto ETF Now Seeking SEC Approval

Key Points:

• Franklin Templeton applies for SEC approval to launch a cryptocurrency index ETF focused on Bitcoin and Ethereum.
• The Franklin Templeton Crypto ETF, if approved, will be listed on the Cboe BZX exchange and use Coinbase Custody Trust as its custodian.

Franklin Templeton has filed an application with the U.S. Securities and Exchange Commission to approve a cryptocurrency index ETF that tracks Bitcoin and Ethereum.

Read more: Franklin Templeton Digital Assets and Sui Now Join Hands to Strengthen DeFi Strategy.

Franklin Templeton Crypto Index ETF Was Proposed

The proposed Franklin Templeton Crypto ETF would provide investors with a regulated vehicle to seek exposure to these two leading cryptocurrencies. The ETF, if approved, would list on the Cboe BZX exchange, with Coinbase Custody Trust Company LLC serving as its digital asset custodian.

The Franklin Templeton Crypto ETF is designed to track an index holding Bitcoin and Ethereum in roughly equal measures, although the potential for additional cryptocurrencies in the future isn’t ruled out.

Regulatory Constraints Keep ETF to Bitcoin and Ethereum for Now

Katalin Tischhauser, the head of investment research at Sygnum Crypto Bank, felt the index ETFs represented a natural evolution for cryptocurrency investment. In the same way, investors normally invest in S&P 500 ETFs, Tischhauser elaborated, index-based crypto funds may soon become the mainstream investment vehicle for digital assets.

However, cryptocurrency index ETFs are only able to reach Bitcoin and Ethereum due to the current regulatory constraints. The product can’t be traded on public exchanges before the SEC approves its registration and at least one exchange is listed.