Trillion-dollar asset manager Franklin Templeton filed a lawsuit against US Securities and Exchange Commission (SEC) 
$61,635 and Ethereum 
$2,471 applied for an exchange-traded fund (ETF) based on the index.
Purpose and Content of ETF
The fund, called Franklin Templeton Bitcoin & Ethereum Crypto Index ETF, aims to offer investors the opportunity to invest in Bitcoin and Ethereum, the largest assets in the market, in a combined manner. In this way, investors will be able to invest in both cryptocurrencies without having to hold crypto assets directly.
The underlying assets of the ETF will include Bitcoin, Ethereum, as well as cash and instruments with maturities of less than three months. BNY Mellon will serve as the fund’s custodian and transfer infrastructure, while Coinbase Custody will custody the ETF’s cryptocurrency reserves.
Index and Performance Tracking
The applied ETF will be fed (for price) by the CF Institutional Digital Asset Index. This index tracks the performance of Bitcoin and Ethereum based on current market conditions. Thanks to this method, it will be easier for investors to benefit from market movements.
This step by Franklin Templeton may create new opportunities for those considering investing in crypto assets. Through ETFs, a wider range of investors can gain access to cryptocurrencies. On the other hand, since there are already approved BTC and ETH ETFs, institutional investors can invest directly in these two even if Franklin does not receive approval.
In addition, the security and transparency elements that are critical for institutional investors are strengthened, as in other ETFs, with the participation of leading companies such as BNY Mellon and Coinbase Custody.
It is a matter of curiosity how the SEC will evaluate this application. If approved, this ETF from Franklin Templeton could have a significant impact on market dynamics.
As a result, Franklin aims to offer a new alternative to institutional investors. Although its product has not received enough attention in the ETF channel, its dual crypto ETF may attract more demand.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
