Franklin Templeton Joins Hashdex, Files For Crypto Index ETF

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As a seasoned analyst with over two decades of experience in traditional finance and emerging markets, I’ve witnessed the evolution of various investment products that have reshaped the financial landscape. The latest move by Franklin Templeton to file for a dual crypto ETF is not just another step in the crypto market, but a giant leap towards institutionalization.

Franklin Templeton, a massive asset manager with trillions under its care, is seeking to increase its influence in the cryptocurrency Exchange-Traded Fund (ETF) sector by filing an application with the U.S. Securities and Exchange Commission (SEC). If approved, this would result in the issuance of a dual crypto ETF. This submission follows closely behind that of South American firm Hashdex, as both companies strive to broaden the rapidly growing and captivating spot crypto ETF market.

Franklin Templeton Throws Early Hat For Crypto Index ETF 

As a researcher, I am sharing that on August 16th, I observed Franklin Templeton filing an application for the creation of the “FRANKLIN CRYPTO INDEX ETF”. This innovative investment fund is designed to incorporate both Bitcoin and Ethereum. The proposed dual-asset exchange-traded fund (ETF) will be available for trading on the Chicago Board Options Exchange (CBOE). Remarkably, Coinbase, a reputable American cryptocurrency exchange, has been designated as the custodian of all assets within the trust associated with this ETF.

Using the Franklin Crypto Index ETF, Franklin Templeton aims to broaden its presence in the U.S. market for crypto spot ETFs, having previously introduced Bitcoin and Ethereum-focused exchange-traded products. Although these investment funds have garnered some attention and established a steady base with inflows totaling $445 million, their performance in the market lags behind similar offerings from other asset managers like BlackRock and Fidelity.

By venturing into the Crypto Index ETF market promptly, an American investment firm might boost its existing positions in this sector. However, it’s worth noting that Franklin Templeton’s proposal to introduce a twin crypto ETF is delayed compared to Hashdex’s application. The Securities and Exchange Commission (SEC) has deferred a decision on Hashdex’s application, explaining that they need additional time to grasp the complexities of the dual crypto ETF.

As an analyst, over the coming weeks, I anticipate that Franklin Templeton will disclose further details about their newly proposed ETF. The Securities and Exchange Commission (SEC) is currently deliberating on their initial response, which they are required to provide within 45 days. This forthcoming information will likely include the proportion of Bitcoin and Ethereum distribution within the fund, as well as the sponsor fee. Notably, Franklin Templeton has already demonstrated its commitment to offering competitive fees with a minimal sponsor fee of 0.19% on their existing crypto spot ETFs.

Crypto ETFs Pave The Way for Institutional Growth

As a researcher, I’ve noticed a remarkable transformation unfolding within the conventional financial landscape. The U.S. Securities and Exchange Commission’s (SEC) groundbreaking approval of Bitcoin Spot ETFs in January signals a heightened interest in cryptocurrency. This increased attention is palpable in the impressive $17 billion valuation of the Bitcoin ETF market, coupled with the recent debut of an Ethereum Spot ETF.

Discussions about launching Exchange Traded Funds (ETFs) for Solana and XRP are picking up steam, alongside the upcoming launch of a dual crypto ETF. Some analysts foresee these ETFs hitting the market as soon as 2025. It’s worth noting that these ETFs could significantly increase demand and growth in the crypto space over the next few years, particularly by encouraging traditional financial institutions to adopt cryptocurrencies more widely.

Franklin Templeton Joins Hashdex, Files For Crypto Index ETF

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2024-08-17 21:11