Asset Manager Franklin Templeton files S-1 for crypto index ETF

Key Takeaways

• Initially, the ETF will focus exclusively on Bitcoin and Ethereum, but the structure of the fund may be adjusted to include other digital assets in the future
• Coinbase Custody Trust Company has been named as the custodian

Leading Asset Manager Franklin Templeton has submitted an S-1 registration form for a new exchange-traded fund (ETF) called the “Franklin Crypto Index ETF”, to the Securitiies and Exchange Commission. The ETF is designed to track the performance of Bitcoin and Ethereum, the two largest crypto by market value.

The filing, dated August 16, outlines Franklin Templeton’s plan to offer investors a diversified entry point into the crypto market, backed by the firm’s extensive institutional expertise. Initially, the ETF will focus exclusively on Bitcoin and Ethereum, but the structure of the fund may be adjusted to include other digital assets in the future, pending regulatory approval.

Coinbase Custody Trust Company has been named as the custodian for the fund’s digital assets, ensuring the secure storage of Bitcoin and Ethereum. The Bank of New York Mellon will handle the fund’s cash holdings and serve as its administrator and transfer agent. If approved, the ETF will be listed on the Cboe BZX Exchange under the ticker symbol “EZPZ.” The Cboe is currently awaiting regulatory approval to allow for the in-kind creation and redemption of shares using digital assets.

Franklin Templeton is not the only firm eyeing a crypto index ETF. In June, Hashdex filed for the Hashdex Nasdaq Crypto Index US ETF, which also targets Bitcoin and Ethereum. The SEC has extended its review period for that application, with a decision expected by September 30. Other asset managers, including Grayscale, have hinted at similar plans, while VanEck has filed for a spot Solana ETF.

The firm has been steadily expanding its presence in the crypto space, having launched a spot Bitcoin ETF in January 2024, followed by an Ethereum ETF in May. Franklin Templeton has also announced plans for a new crypto fund that will invest in a broader range of digital assets beyond Bitcoin and Ether.

Earlier this month, Nasdaq submitted a filing to US regulators requesting permission to list options on ETH ETFs. SEC is yet to allow any exchanges to list options on spot BTC or ETH ETFs.