Breaking: Franklin Templeton Files For Bitcoin and Ether Crypto Index ETF
American financial asset manager Franklin Templeton has filed an application with the United States Securities and Exchange Commission (SEC) to launch a Crypto Index ETF. This new exchange traded fund will initially hold Bitcoin and Ethereum, the two products it currently administers on US markets.
Franklin Templeton Crypto Index ETF: What is New?
Since January that the Gary Gensler-led SEC greenlighted Bitcoin ETF, many issuers have doubled down on their industry engagements. With the new allowance, Franklin Templeton also joined the Ethereum ETF bandwagon in May.
Though the asset manager is not one of the top performing ETF issuers for either Bitcoin or ETH, it occupies a pivotal niche in the sector. According to data from Farside Investors, its BTC ETF EZBC has recorded one inflow since July 29. For its ETH ETF product EZET has had better days with $35 million inflow within the same period.
Per its S-1 filing, this new Crypto Index Fund will be administered as a weighted offering. As showcased in its filing with the SEC, the weighting will be based on the market cap of the individual components. This combined index fund is an unchartered territory, one that may help the firm dominate some aspect of the ETF market. This latest filing comes as the firm has started eyeing Solana ETF as the next for SEC approval.
As Franklin Templeton detailed in its filing, it will get pricing data from CF Bitcoin and Ether reference rates for the fund. One major consideration now remains whether the SEC will approve the product or not. With the filing still new, this remain difficult to project.
Growing Dominance War Among Issuers
With the recent 13-F filing, the spot Bitcoin and Ethereum ETF markets saw new Wall Street firms disclosing their exposure to the assets. Banking giant Morgan Stanley unveiled a massive BTC exposure in Q2. Other banks like Goldman Sachs also revealed exposures.
Where these institutional investor’s fund is going remain a major hurdle among Crypto ETF issuers. Recently, BlackRock outranked Grayscale as the largest Bitcoin and Ethereum ETF issuer. This is because the former has continued to welcome inflows from Wall Street giants while the latter’s outflows has not ceased.
With combined fund offerings, a new level playing field might be created to redefine issuer’s competition.
Read More: Bitcoin Price Prediction: How ETF Inflows Affect BTC Price
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