Franklin Templeton has filed an S-1 form with the SEC to create an ETF that combines Bitcoin and Ethereum, marked under the ticker EZPZ.
The Franklin Crypto Index ETF could include other cryptocurrencies in the future, depending on regulatory approvals.
This filing comes amidst competition, particularly with Hashdex, which is also proposing a similar ETF, but the SEC’s decision has been delayed until September 30, 2024.
A New Index Fund for Cryptocurrencies
Investment in digital assets continues to gain popularity, and major financial institutions don’t want to be left behind. In line with this, Franklin Templeton, a renowned investment firm, has recently filed an S-1 form with the SEC to create an ETF that combines Bitcoin and Ethereum.
This fund, which would be listed under the ticker EZPZ, is a significant step for the company in the digital asset sector, with the potential addition of many other cryptocurrencies.
Flexibility and Regulatory Evolution
One notable aspect of Franklin Templeton’s filing is the inclusion of a clause allowing for the future addition of other cryptocurrencies to the ETF’s portfolio, subject to regulatory approval. This suggests that the company anticipates crypto expansion beyond BTC and ETH as other cryptocurrencies gain recognition and regulation.
Coinbase has once again been chosen as the custodian for the crypto assets, maintaining its position as a leader in the field of cryptocurrency ETFs in the United States.
Competitive Landscape: The Race for Combined ETFs
Franklin Templeton’s filing comes amidst increased competition, particularly with Hashdex, which recently submitted its own proposal to create an ETF that combines Bitcoin and Ether. Hashdex was among the first to propose such a product, marking the beginning of a new trend in the crypto ETF industry.
However, the SEC has delayed its decision regarding Hashdex’s proposal, postponing any action until September 30, 2024.
