Bitrabo Editorial
Franklin Templeton, a giant asset manager, is looking to make its mark in the crypto ETF market by filing an application with the US Securities and Exchange Commission (SEC) for a dual crypto ETF. This move comes shortly after Hashdex, a South American company, also filed to expand the market for crypto spot ETFs.
Franklin Templeton Makes Early Move Towards Crypto Index ETF
On August 16, Franklin Templeton submitted an application to introduce the “FRANKLIN CRYPTO INDEX ETF,” a fund meant to contain Bitcoin and Ethereum. This proposed dual spot ETF will be listed on the Chicago Board Options Exchange (CBOE), with Coinbase as the designated custodian for all assets in the trust.
By launching the FRANKLIN CRYPTO INDEX ETF, Franklin Templeton aims to broaden its presence in the US crypto spot ETF market. Despite their previous launches of Bitcoin and Ethereum-based exchange products garnering $445 million in combined inflows, these funds have not performed as strongly as those managed by BlackRock and Fidelity.
The SEC’s approval decision on Hashdex’s dual crypto ETF has been postponed for further evaluation of its intricacies. Franklin Templeton intends to disclose more details about its new ETF in the following weeks as the SEC considers its initial response, which is required within 45 days. Notably, Franklin Templeton is known for offering low fees, as evidenced by the 0.19% sponsor fee on its current crypto spot ETFs.
Crypto ETFs Facilitate Institutional Growth
The approval of Bitcoin Spot ETFs by the SEC in January represents a significant shift in traditional finance institutions’ interest in cryptocurrency. The current Bitcoin ETF market valuation stands at $17 billion, with the recent introduction of an Ethereum Spot ETF.
In addition to the dual crypto ETF venture, there are discussions about the potential launch of Solana and XRP ETFs, with some analysts predicting a possible debut by 2025. Spot ETFs are anticipated to play a key role in driving crypto demand in the financial sector and encouraging adoption by traditional institutions in the foreseeable future.