Franklin Templeton Files for ETF to Offer Combined Exposure to Bitcoin and Ethereum on CBOE

Franklin Templeton is taking a big step by filing for a new exchange-traded fund (ETF) that aims to give investors access to both Bitcoin and Ethereum. If the U.S. Securities and Exchange Commission (SEC) approves this plan, the ETF will trade on the Chicago Board Options Exchange. BNY Mellon will handle the fund's custody.

This ETF will be linked to the CF Institutional Digital Asset Index, which tracks the performance of Bitcoin and Ethereum. Franklin Templeton wants to create a simple way for investors to engage with these two leading cryptocurrencies.

The filing, made on October 2, shows their intention to launch an index fund that covers both Bitcoin and Ethereum. An index fund allows investors to gain exposure to a group of assets without owning them directly. In this case, investors can benefit from the price movements of Bitcoin and Ethereum.

If the SEC gives the green light, this ETF will be traded on the CBOE. BNY Mellon, one of the largest custodians in the U.S., will manage the fund’s cash and cash equivalents. Meanwhile, Coinbase will take care of the Bitcoin and Ethereum tokens.

One interesting detail is that the fund will be sold in large increments—specifically, in blocks of 50,000 shares. The price per share will be determined based on the fund's Net Asset Value (NAV). This ETF will also benchmark against the CF Institutional Digital Asset Index, ensuring it tracks market performance accurately.

This filing could mark a significant expansion for Franklin Templeton in the cryptocurrency world. The firm already offers clients access to spot Bitcoin and Ethereum ETFs, showing its commitment to growing its crypto offerings.

Interestingly, this ETF filing came shortly after Franklin Templeton announced a partnership with the Aptos Foundation to launch on-chain U.S. Government Money Market Funds (FOBXX). This initiative allows investors to access FOBXX through the BENJI token, highlighting the firm’s innovative approach to blending blockchain technology with traditional finance.

BNY Mellon is set to play a key role in this ETF. They will take on their first ETF custody responsibilities after receiving a non-objection letter from the SEC. This approval allows BNY Mellon to hold digital assets, starting with Bitcoin and Ethereum ETFs.

While this exemption comes with conditions, SEC Chairman Gary Gensler has indicated that BNY Mellon could expand its digital asset custody services if they follow specific guidelines.

If you're interested in the intersection of traditional finance and digital assets, mark your calendar for Benzinga's Future of Digital Assets event on November 19. It will feature insights and discussions with industry experts.

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