Franklin Templeton plans to launch a new Crypto Index ETF that will track the CF Institutional Digital Asset Index, focusing on Bitcoin and Ethereum, according to an August 16 filing.
Franklin Templeton, an asset manager, is intending to introduce a new exchange-traded fund (ETF) that is intended to function as a comprehensive crypto portfolio, according to a filing from August 16.
According to the filing, the Franklin Crypto Index ETF will monitor the performance of the CF Institutional Digital Asset Index, which currently consists solely of Bitcoin and Ethereum.
The Franklin Crypto Index ETF is a pioneer in the crypto index ETF market, which is rapidly becoming the next area of concentration for crypto ETF issuers following the launch of BTC and Ether ETFs in January and July, respectively.
It will be in competition with the Hashdex Nasdaq Crypto Index ETF, which was the first crypto index ETF to pursue regulatory clearance.
Tischhauser stated that the Securities and Exchange Commission (SEC) has only authorized the inclusion of digit assets in ETFs, which is why crypto index ETFs are presently restricted to BTC and ETH.
“They intend for it to function as an index, and as long as only Bitcoin and Ethereum are approved, that is what it will include,” Tischhauser stated.
She also stated that there is a limited demand for new forms of single-asset ETFs, such as the Solana SOL.
Grayscale, the most significant crypto fund issuer with $25 billion in assets under management (AUM), also expressed interest in participating in crypto index ETFs.
Dave LaValle, Grayscale’s global director of ETFs, stated on August 12 that there will be an increase in the number of single asset products, as well as index-based and diversified products.
The SEC must approve the ETF’s registration application, known as an S-1, and authorize at least one public equities exchange, such as Nasdaq, to list the product before it can be traded on exchanges.
