Michaela
Asset management firm Franklin Templeton has filed with the U.S. Securities and Exchange Commission (SEC) for a multi-asset crypto exchange traded-fund (ETF), reinforcing its push into digital assets. The move follows a surge in ETF applications after President Trump’s inauguration, as firms anticipate a more favorable regulatory landscape.
If granted regulatory approval, the Franklin Crypto Index ETF will enable investors to gain exposure to Bitcoin and Ethereum’s spot prices within a single fund. The ETF, which is set to be listed on the Cboe BZX Exchange, will allocate assets based on each cryptocurrency’s market capitalization.
As of the filing date, the ETF’s allocation was approximately 86.31% Bitcoin and 13.69% Ethereum. The index will undergo rebalancing and reconstitution on a quarterly basis, scheduled for March, June, September, and December.
Franklin Templeton’s filing follows a similar submission by Bitwise, which applied for a multi-asset crypto ETF just weeks earlier.
The asset manager acknowledged in its filing that while additional crypto tokens could be considered for inclusion in the Crypto Index ETF in the future, their addition would require regulatory approval for both the fund and the Cboe BZX Exchange.
However, the firm cautioned that there is “no assurance” that any digital assets beyond Bitcoin and Ethereum — the two largest by market capitalization — will receive the necessary approval.
What’s In It For Investors?
For retail investors, the approval of Franklin Templeton’s ETF would provide a regulated, diversified entry point into the two largest cryptocurrencies, eliminating the need for direct custody or complex trading strategies.
ETFs offer a simpler alternative to directly holding cryptocurrencies. With an ETF, investors are relieved from the complexities of managing private keys, and wallets, or navigating the intricacies of crypto exchanges. Instead, the fund’s management team takes on the responsibility of purchasing, storing, and securing the underlying digital assets, streamlining the investment process.
Additionally, investors would benefit from simplified tax reporting as they would receive statements similar to those for traditional securities. This eliminates the often cumbersome process of reporting cryptocurrency transactions and capital gains when holding assets directly, which can be especially tricky for investors involved in multiple transactions.
With cryptocurrencies continuing to see increasing adoption and institutional investment, Franklin Templeton’s entry into the market with a diversified crypto ETF opens the door for potential growth.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
