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Franklin Templeton files for Bitcoin and Ethereum ETF approval

Franklin Templeton files for Bitcoin and Ethereum ETF approval

GrafaGrafa2024/10/04 04:10
By:Mahathir Bayena

Franklin Templeton has submitted a proposal to the U.S. Securities and Exchange Commission (SEC) for a new Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) index ETF. 

According to the filing, the proposed fund will offer exposure to both cryptocurrencies through an indirect method, with assets including Bitcoin, Ethereum, cash, and short-term financial instruments. 

If approved, the ETF would be the first to combine both Bitcoin (BTC) and Ethereum (ETH) in a single fund, catering to investors seeking a diversified crypto investment without direct staking involvement. 

According to the filing, the ETF shares will be issued in blocks of 50,000, tied to the net asset value (NAV) of the Bitcoin and Ethereum held by the fund. 

BNY Mellon, a major American investment banking firm, will serve as the fund’s custodian and transfer agent, while Coinbase Custody will manage the digital assets. 

The SEC’s approval decision will hinge on anti-fraud measures, specifically related to oversight in regulated futures markets

The proposal emphasizes existing oversight agreements with regulated markets to ensure safe and transparent trading of the underlying assets. 

This is a key factor for the SEC when approving crypto ETFs, as it aims to protect against fraud and manipulation. 

This ETF submission marks Franklin Templeton’s latest push into blockchain and cryptocurrency

Just two days prior, the firm launched the Franklin Onchain U.S. Government Money Fund on the Aptos blockchain, allowing institutional investors to access assets through tokenized digital wallets. 

The company has also been involved in offering Bitcoin and Ethereum exposure through other ETF products and is planning additional mutual funds. 

At the time of reporting, the Bitcoin price was $61,162.03, while the Ethereum price was $2,373.06.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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