Franklin Templeton Seeks SEC Nod for Dual Bitcoin and Ethereum ETF

• Franklin Templeton seeks SEC approval for a dual Bitcoin and Ethereum ETF, further expanding its presence in the crypto space.
• The ETF will be managed by Bank of New York Mellon, with Coinbase as custodian, reflecting the growing institutional interest in digital assets.

On October 2, 2024, the U.S. Securities and Exchange Commission (SEC) announced that Cboe BZX Exchange, Inc. submitted a proposed rule change to list and trade shares of the Franklin Crypto Index ETF, part of the Franklin Crypto Trust, under BZX Rule 14.11(e)(4) for Commodity-Based Trust Shares.

The filing, made on September 19, 2024, is now open for public comment as the SEC seeks feedback on the proposed changes. Designed as an index fund, it would allow investors to benefit from the price movements of these assets through the Chicago Board Options Exchange (CBOE). This may relate to Franklin Templeton’s recent expansion of its Tokenized U.S. Money Fund to the Aptos Blockchain, as recently reported by CNF.

The proposed fund’s assets will be managed by Bank of New York Mellon, which will handle cash and equivalents, while Coinbase will act as the custodian for the Bitcoin and Ethereum holdings. The fund will be sold in blocks of 50,000 shares, with the share price determined by the Net Asset Value (NAV). Moreover, the fund will be benchmarked against the CF Institutional Digital Asset Index, tracking the performance of these leading digital assets.

Expanding Franklin Templeton’s Crypto Presence

This ETF filing marks a significant step for Franklin Templeton, further embedding the asset manager in the cryptocurrency space. The firm already offers spot Bitcoin and Ethereum ETFs to its clients, reflecting its commitment to expanding its crypto product suite.

Interestingly, this filing came just after Franklin Templeton’s partnership with the Aptos Foundation to introduce on-chain U.S. Government Money Market Funds (FOBXX), demonstrating the company’s integrated approach to traditional finance and blockchain technology.

Additionally, Bank of New York Mellon (BNY Mellon), which has recently received regulatory clearance from the SEC, will oversee the digital asset custody duties for the ETF. This role highlights BNY Mellon’s growing influence in the digital asset space, with further expansion expected under SEC Chairman Gary Gensler’s guidelines.

As of now, Ethereum (ETH) is trading at $2,385.10, with a decrease of 0.15% in the past day and 10.52% in the past week. See ETH price chart below.